Faisalabad March 5 2022: As per the latest data released by the Pakistan Cotton Ginner’s Association (PCGA), the cotton arrival in the country decreased by 34.5 percent YoY and reached at 4.87 million bales as of 1st March 2023 due to catastrophic climate changes resulting in above normal rainfalls causing floods.
Flood-related cotton losses are expected to weigh on the domestic textile industry, as local cotton constitutes about half of the industry’s required cotton input. Textiles account for around one-quarter of total industry output and more than half of goods exports, according to government flood assessment report.
The floods will also exacerbate existing external pressures. Around 50 percent of the required cotton input for the local textile industry is sourced domestically. With reduced supplies of domestic cotton, cotton imports are expected to increase to mitigate the shortage.
Cotton arrival in Punjab reached at 2.99 million bales as of 1st March 2023 compared to 3.93 million bales in the same period last year, witnessed decrease of 932 thousand bales or 23.7 percent.
Cotton arrival in Sindh reached 1.88 million bales on 1st March 2023, compared to 3.51 million bales as of 1st March 2022, decline by 46.5 percent YoY and in absolute term 1.63 million bales.
On the other side, Textile related imports decreased by 9.11 percent to USD 2.46 billion in first seven months of fiscal year 2023 compared to USD 2.71 billion in the same period last year.
The country has received nearly 190% more rain than the 30-year average in the quarter through August this year, totalling 390.7 millimetres (15.38 inches).
Additional Cotton requirement will be sourced from countries that have a surplus due to the global recession – Turkey is one example of the biggest cotton importer, currently exporting instead. Currently, cotton is being procured from the United States of America, West Africa, Brazil and Afghanistan and various other countries.
