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Cotton production once again dips drastically in 2008-09
May '09
Cotton production of Pakistan for the crop season 2008-09 has decreased by 2.8 million bales, and in the process fell below the government's target of 14.1 million bales, said Rana Abdul Sattar, chairman Pakistan Cotton Ginners Association (PCGA).

Pakistan witnessed this decrease in cotton production due to the non-supply of better quality seeds, insufficiency of quality inputs and water supply. Due to these bottlenecks, the target had been revised to the level of 12.5 million bales, which too was not achieved.

According to Pakistan Cotton Ginners Association (PCGA), in the production year 2007-08, cotton production of the country was 11.7 million bales, which was lower than the initial target by 2.4 million.

Member of Cotton Committee of Federation of Pakistan Chambers and Industry (FPCCI), Ghulam Rabbani said that the final amount of the production for 2008-09 was 11.34 million bales at the ginneries.

Out of this final arrival, textile sector purchased 10.31 million bales, private sector exporters bought 0.29 million bales while the Trading Corporation of Pakistan bought 0.18 million bales and 0.54 million bales remained as stock.

The gross margins of textile manufacturers would be affected due to the higher cotton prices. To run their mills, the textile and spinning sector will have to bear the burden of $1.20 billion on the import of lint.

Due to the reduced contribution from countries like India, Australia, Pakistan, African France Zone and Turkey there was a decline in world cotton production, indicates the US Department of Agriculture's World Agricultural Supply and Demand Estimates.

The domestic prices have receded to Rs.3,650 per mound and the lint price was 25 percent more than that of last year's, which was Rs. 3,300 per mound during the same period in the month of April.

Due to the lower production and higher consumption, the cotton prices will remain high. The world cotton ending stocks for the season 2008-09 fell by 5 percent to 10.96 million tones, indicated International Cotton Advisory Committee.

Around 20 percent of cotton crop in Punjab and interior Sindh has been affected because of the lack of expertise to get rid of cotton virus and heavy rainfall, said Rabbani.

The other factors for lower production include less cultivation area due to shift towards sunflower and sugarcane, drastic weather conditions, crop diseases like Cotton Leaf Curl Virus (CLCV) and mealy bug.

Regarding cotton consumption, ICAC indicated that the decline of 1 percent in the world cotton consumption during the year 2008-09, was due to the ongoing economic crises.

Fibre2fashion News Desk - India

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