MUMBAI (Commoditiescontrol) - The USDA in its latest Global Agriculture Information Network (GAIN) report, projected Pakistan’s 2015-16 cotton production at 10 million bales (140 lb), down from 10.5 million bales in 2014-15.
Though cotton growers in the country are under stress given the lower cotton prices all over the world, cotton area in 2015-16 is forecast at 2.95 million hectares, unchanged from the revised 2014-15 official estimate. Farmers in cotton growing areas have limited alternative planting options. Rice, corn, and sugarcane are all possibilities, but, at this stage, there do not appear to be any crops that would be significantly more remunerative, the USDA said. In addition, some of the alternatives do not perform well in cotton growing areas. Hence, cotton area is not expected to change much.
The USDA has estimated the country’s domestic consumption to increase to 11.3 million bales, up 7 per cent from 2014-15 of 10.62 million bales. The textile sector continues to benefit from the European Union’s (EU) late 2013 decision to grant Generalized System of Preferences “Plus” status to Pakistan. The status provides tariff and quota-free access to Pakistani products entering the EU and textile exports have benefited significantly, resulting in an expected increase in consumption.
Cotton imports in the country are forecast at 2 million bales, up from 0.8 million bales, while exports are forecast at 500,000 bales compared to 600,000 bales in 2014-15. As per the Federal Bureau of Statistics, Pakistan had imported around 61.35 million bales of cotton between August- January of 2014-15 season. Similarly, country’s cotton exports between August-January of 2014-15 stood at 86.98 million bales.
Total supply of cotton in the markets in 2015-16 is estimated at 14. 55 million bales (1 Bls=480lb) than that of 13.77 million bales in the current season. Country’s 2015-16 cotton ending stock is seen at 2.7 million bales, up from 2.55 million bales in 2014-15.
The USDA had revised up Pakistan’s 2014-15 cotton production at 10.5 million bales from 10.4 million bales estimated earlier. It had also increased its estimate on country’s domestic consumption at 10.6 million bales from 10.5 million bales.
(By Commoditiescontrol Bureau; +91-22-61391533).
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