Islamabad [Pakistan], August 4 : Pakistan's cotton production has dropped by 30 per cent compared to the same period last year, with only 594,000 bales reaching ginning factories by July 31, according to data released by the Pakistan Cotton Ginners Association (PCGA), Dawn reported .
The report on Sunday highlights a drastic 47 per cent drop in Sindh's cotton output, whereas Punjab recorded a slight improvement in production. PCGA data shows Punjab's ginning factories received 302,000 bales by July 31--a 3 per cent increase over the previous year. In contrast, Sindh's factories processed only 292,000 bales, reflecting a 47 per cent decline.
Adding complexity to the figures is a stark discrepancy between PCGA data and that of the Punjab Agriculture Department's Crop Reporting Service (CRS). While the PCGA reported 301,000 bales arriving at Punjab's ginning factories, CRS stated that the province produced 609,000 bales--"an astonishing 100pc more than the PCGA figures," Dawn noted.
Despite the overall decline, 99,000 bales from the current year's produce are still available for sale at ginning factories, up from 64,700 bales last year. Textile mills have purchased 529,000 bales during this period, Dawn reported.
Currently, 114 ginning factories are operational in Punjab and 154 in Sindh, a shift from last year's 120 in Punjab and 105 in Sindh. A large portion of cotton from Sindh and Balochistan is being diverted to Punjab due to better prices, according to Cotton Ginners Forum Chairman Ihsan-ul-Haq.
"Recent heavy rains have adversely affected the quality of cotton, subsequently impacting the quality of lint," Haq said. He added that this has "led to a lack of interest from textile mill owners in purchasing lint, causing substantial losses to ginning factory owners."
Ginning factories in several cities across Punjab and Sindh are now beginning to shut down operations, which Haq warned "could lead to a downward trend in cotton prices."
To address the situation, the PCGA has introduced a cotton moisture policy effective from August 1, in light of above-normal rains in the cotton belt, Dawn reported.
In a letter issued by PCGA Secretary General Zikrullah Khalidi last Thursday, it was announced that "ginners would pay full rate to the growers without any deduction (allowance) in the weight in case of up to 10pc moisture in their produce."
"In case of 11 to 40pc moisture, a deduction (allowance) of 100 grams will be made, while the produce having over and above 40pc moisture will be rejected," the letter added.