Cotton arrival in Pakistan registered a massive decline of 34% as of November 15, 2024 compared to the same period of the previous year, showed data released by the Pakistan Cotton Ginner’s Association (PCGA) on Monday.
As per the report, total cotton arrival in Pakistan clocked in at 4.894 million bales compared to 7.371 million bales recorded on November 15, 2023, a decrease of 2.477 million bales.
On a fortnightly basis, cotton arrivals improved by 14%, as compared to 4.291 million bales recorded on October 31, 2024.
“The decrease in cotton arrivals has been attributed to poor farmer economics and delayed planting of the cotton crop,” said Arif Habib Limited (AHL) in a note.
The decline in cotton arrival, an essential raw material for the textile sector, is a concerning development for Pakistan.
Cotton arrival in Pakistan slumps in September 2024
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 rising energy prices.
Owing to the ongoing decline in cotton arrivals, the country’s cotton import bill is projected to reach $1.9 billion in the ongoing fiscal year (FY25).
“We believe the cotton import bill is anticipated to reach $1.9 billion, which is 3.9x higher as compared to last year’s import bill of $448 million,” said AHL last month.
This would likely exacerbate the country’s balance of payment crisis, which struggles to manage its foreign exchange reserves and sustain external debt repayments.
Province-wise breakup
As per PCGA data, cotton arrival significantly declined from both Punjab and Sindh.
As of November 15, cotton arrival in Punjab clocked in at 2.245 million bales as compared to 3.429 million bales clocked in during the same period last year, a decrease of 35%.
However, on a fortnightly basis, cotton arrivals from Punjab were up by 22%, as compared to 1.842 million bales reported on October 31, 2024.
Similarly, cotton arrival in Sindh also declined by 33% at 2.649 million bales compared to 3.942 million bales registered in SPLY.
However, the fortnightly increase was also observed in Sindh, as cotton arrivals increased by 8% as compared to 2.449 million bales recorded on October 31.