Daily Times

KARACHI: The leading buyers finalised contracts for 300,000 cotton bales with traders in South Africa, India and United States of America (USA) during May-June 15, 2016.

The shortfall to around 3 million bales in cotton production 2015-16 season in the country forced textile and commercial sector to make contracts with traders besides buyers to make contract for prime cotton grade (PIMA) with USA.

“We expect to import more than 1.5 million bales of various qualities amounting to $24.3 billion till end this year”, said senior member of Karachi Cotton Association (KCA), exporter, importer and ginner Ghulam Rabbani.

He said country’s demand for raw cotton has gone up to around 14.5 million bales (of 175 kg each), while the production this year due to short supply of water and pesticides besides use of un-certified seed was expected to be 12.1 million bales end season.

Rabbani said in last crop season 2015, the country achieved only 13.8 million bales against a target of 14.90 million cotton bales. Textile and spinning sector has to bear load of the imports.

We are expecting a shortfall of more than three million bales, unlike Pakistan, India is expecting a better cotton crop led in part by an increase in cultivation of genetically modified cotton and a rise in the acreage.

He said among the leading producers of cotton, India is seen as an emerging force in the global market as production continues to outpace domestic demand.

A lot of cotton is already being imported from USA as it is of good quality. At current price levels, importing Indian and US cotton is not a workable proposition. Currently, US lint is available around 69-72 cents per pound while Indian cotton is available for about 66-70 cents per pound. He said still the government was not prepared for supply of quality seeds, quality inputs and water availability is not assured, the production would reach only around 12.30 million bales.