Cotton arrival in Pakistan decreased 40% on a year-on-year basis, showed the latest fortnightly data released by the Pakistan Cotton Ginner's Association (PCGA) on Monday.
As per the report, total cotton arrival in Pakistan declined to 4.281 million bales as of December 1, 2022, compared to 7.168 million bales in the same period last year, a fall of 2.887 million bales or 40.2%.
The decline in cotton arrival is attributed to flash floods in Pakistan earlier this year, which inundated large swathes of agricultural land in the country, especially devastating the cotton-growing regions of Sindh and Punjab.
Cotton arrival declines 41% year-on-year owing to flood losses
“The targets fixed for current Rabi-2022- 23 crops seem to be challenging due to delayed sowing in the flood-affected areas. However, timely rains may positively impact the production in the agriculture sector,” the Ministry of Finance had said in its latest “Monthly Economic Update & Outlook for November”.
Meanwhile, as per PCGA data, cotton arrivals reported a substantial decrease from both Sindh and Punjab.
As of December 1, cotton arrival in Sindh was 1.765 million bales compared to 3.489 million bales in the same period last year, a decrease of 1.724 million bales or 49%. On a monthly basis, cotton arrival recorded an improvement of 8% as compared to 1.635 million bales arrived on November 1.
Similarly, cotton arrival in Punjab clocked in at 2.515 million bales as compared to 3.679 million bales reported in the same period last year, a decline of 32%. However, on a monthly basis, cotton arrival recorded a significant increase of 21% as compared to 2.072 million bales arrived on November 1.
Meanwhile, industrialists have also expressed concern over the decline in textile exports.
Leaders of the United Business Group (UBG) termed the decline serious as it has come despite substantial rupee depreciation, which made exports cheaper.