KARACHI: The cotton production in the country has declined by 34.28 percent to 9.768 million bales in the current season.
According to the Pakistan Cotton Ginners’ Association (PCGA), the country produced 14.863 million bales in the same period of last season, ending in the mid of April. The government revised down this year’s cotton production target to 10.9 million bales. Earlier, the Cotton Crop Assessment Committee estimated 15 million bales for the 2015-16 season.
In Punjab, production saw a sharp decline of 4.887 million bales to six million bales this year over the previous year. Cotton output losses in Sindh, however, slightly decreased to 3.766 million bales from 3.974 million bales.
Cotton contributes around 8.5 percent of gross domestic product of the country, accounting for 60 percent of total exports. The country ranks 4 among the 70 cotton-growing countries.
Meanwhile, buyers remained eager for fine grade at the cotton market and around 300 bales changed hands. The Karachi Cotton Association (KCA) spot rate unchanged Rs 5,350 per maund. Floor brokers said buyers bought all grades on slightly higher prices at around Rs 5,025 per maund to Rs 5,575 per maund during the trading session.
According to KCA, 100 bales of Multan changed hands at Rs 5,125 per maund, 100 bales of Dadu at Rs 5,175 per maund, 100 bales of southern Punjab at Rs 5,250 per maund and 100 bales of Hyderabad at Rs 5,000 per maund.
The ginners of Punjab offered cotton of all grades to the buyers around Rs 5,000 per maund to Rs 5,250 per maund while ginners of Sindh offered low-grade lint to the buyers around Rs 4,950 per maund. New York Cotton May future closed slightly up and stayed at 61.62 cents per pound and July future 2016 closed at 60 cents per pound.
