Some 800,000 cotton bales have been damaged by flood devastation in Southern Punjab so far, said textile industry sources. According to the reliable sources, a total of 540,000 acres of cotton sowing area in Southern Punjab is affected badly from flood where standing cotton crop is damaged heavily.
Especially, said the sources, districts like Jhang, D G Khan, Rahim Yar Khan, Layyah, Bhakkar and Muzaffargarh are the worst hit of flood water, causing extensive damage to the standing cotton crops there. It may be noted that the spot rate and lint prices kept on galloping on cotton market and the Karachi Cotton Association (KCA) official spot rate was extended by Rs 100 a day earlier to Rs 7000. On the other hand, some 4700 cotton bales changed hands in the ready business between Rs 6300 - 7400.
Textile sources said prediction of more rains in near future was pushing prices up and may continue till the rains not stopped. Further, they added, a persisting demand for cotton on the part of mills was another factor. According to these circles, cotton prices may shoot up further with damages by floods to standing crops. The industry sources said the damage to cotton crop in Sindh has not been ascertained yet, as flood water was flowing through Sindh at present. The concerned authorities would be able to assess real damage to cotton crop once flood is over, they added.
However, some textile circles firmly believe that present spell of rains may be a blessing to the cotton growing areas where no flood water has reached to damage the crop. A good spell of rains might nullify the impact of flood damage to cotton crop, said one cotton expert.
It is worth noting that All Pakistan Textile Mills Association (APTMA) has urged the government to seek immediate market access from both the US and the EU in order to mitigate the negative impact of flood on cotton crop. While the UN report regarding the serious nature of destruction of flood, the APTMA leadership has suggested the government to pursue the US and the EU for market access, as they offered in the case of Tsunami in Sri Lanka and its neighbouring countries.