Cotton arrivals plummet 48pc at ginning stage

LAHORE: A new report by the Pakistan Cotton Ginners’ Association (PCGA) reveals a significant decline in cotton production for the 2024-25 season.

The maiden arrival report, issued on July 20th, details a staggering 48.48 per cent decrease in total cotton arrivals nationwide compared to the previous year.

As of July 15, 2024, ginning factories have received only 0.442 million bales, compared to 0.858 million bales during the same period in 2023. Decline in cotton bought by ginners has been seen in both Punjab and Sindh.

The seed cotton arrival report provides the detailed flow of silver fibre at the arrival stage, pressing, sales, and stock of cotton bales across various districts in Punjab and Sindh, as well as a summary for the entire country. PCGA data includes comparisons to the previous year’s figures, showing significant decreases in cotton arrivals and stocks.

Total cotton arrivals in the country as of July 15, 2024 are 0.442 million bales, compared to the previous year’s level of 0.858 million bales.

In Punjab, the traditional largest producer of cotton, total arrivals of seed cotton are reported to be 0.114 million bales, recording a 42.49 per cent decrease from the previous year’s level of 0.198 million bales.

Sindh has total arrivals of 327,666 bales, showing a 47.78 per cent decrease from the previous year’s arrival of 0.659 million bales. The total unsold stock has been reported at 0.067 million bales, compared to 0.165 bales the previous year.While considering trend for each district in terms of arrivals, pressing, sales, and stock, cotton purchase data highlights significant reductions in most areas.

Last year, Punjab’s contribution to the national cotton output saw a dramatic decline, with the province’s production now barely matching that of Sindh, despite its traditionally larger cultivation area, as per consolidated industry data for the last marketing year.

The province’s cotton output share has shrunk significantly, largely due to the inability of authorities to ensure a due return to growers coupled with rampant problems of low-quality seed, fake pesticides, and costly inputs.

Punjab, the biggest agrarian economy of the country, used to produce two to three

times more cotton than Sindh’s output. On average, the share of Punjab in national cotton production has been three-fourths, but in the season concluded on March 31, 2024, the share of the province was hardly equal to Sindh’s production, which is sown on a far lesser area.

According to the final tally of seed cotton (phutti) arrivals at the ginning stage during the 2023-24 season, which was released on March 31, 2024, ginning factories in Punjab recorded the arrival of 4.281 million bales, as compared to 4.114 million bales registered in Sindh during the same period.

Farmers expressed indignation over the government’s failure to procure cotton at the set price of Rs8,500 per maund. The announcement of the government to buy cotton from growers through the Trading Corporation of Pakistan (TCP) proved to be illusory. Owing to the inability of the government to support the cotton price in the market, farmers have had to face huge losses.

The latest report from the PCGA indicates that ginning factories in the country have received seed cotton equivalent to more than 8.396 million bales. This marks a 72 per cent increase in arrivals compared to the same period in 2023 when the standing crop was significantly damaged due to record floods and rains.