Cotton arrival inches 1.8% higher in last two weeks of December

Cotton arrival in Pakistan witnessed a marginal increase of 1.8% as of December 31, 2023, compared to December 15, 2023, showed the latest fortnightly data released by the Pakistan Cotton Ginner’s Association (PCGA) on Wednesday.

As per the report, total cotton arrival in Pakistan rose to 8.171 million bales compared to 8.024 million bales recorded on December 15, 2023, an increase of 0.147 million bales.

On a year-on-year basis, however, cotton arrival surged by over 77%, when compared to 4.612 million bales registered on December 31, 2022.

Last year, flash floods in Pakistan devastated large swathes of agricultural land in the country, especially in Sindh and Balochistan, impacting cotton crop production, which witnessed a 34% YoY decline.

The improvement in cotton arrival, an essential raw material for the textile sector, is a welcome development for cash-strapped Pakistan.

The country’s crucial textile sector, responsible for a majority of Pakistan’s exports, has been at the receiving end of a plunge in demand and escalating economic woes.

Last month, the All Pakistan Textile Mills Association (APTMA) demanded that the government bring power tariffs down to a regionally competitive level of 9-10 cents/kWh where Pakistan’s exports are competitive in international markets.

The association urged caretaker Federal Minister for Energy Muhammad Ali to expedite the reform process considering the gravity of the situation.

Province-wise breakup

As per PCGA data, cotton arrival reported a substantial increase from both Punjab and Sindh. Meanwhile, Sindh surpassed Punjab in cotton production.

As of December 31, cotton arrival in Punjab clocked in at 4.078 million bales as compared to 3.957 million bales reported on December 15, 2023, an increase of 3%. On a yearly basis, cotton arrivals from Punjab jumped by 47.66%, as compared to 2.762 million bales clocked in during the same period last year.

Similarly, cotton arrival in Sindh was 4.092 million bales compared to 4.067 million bales recorded on December 15, an increase of 0.025 million bales or 0.6%. However, the YoY increase was more pronounced in Sindh, as cotton arrivals jumped by 121.2% as compared to 1.850 million bales registered in SPLY.