By Aziz Shah, Cotton Consultant and Analyst

According to the Pakistan Cotton GinnersΆ Association, the production of seed cotton has reached about 14.4 million bales as of March 2012. Almost 13.5 million of those bales have already been sold in the domestic or international markets, leaving an unsold stock of about one million bales. That level of production is the highest in Pakistan's history, and there are still about 500,000 bales that could arrive in the next month, which would elevate the total production to about 15 million bales for the 2011/12 season.

Variance by province was unusually high, compared with last yearΆs production numbers. Sindh produced 29.8% less cotton – while Punjab produced 51.9% more – than they did the previous year. The main reason for record-high production in Punjab is the expanded use of Bt seed, which performed well this season and should produce equal results next year.

If the use of Bt seed in increased, things could be even better next year in Punjab. If the opportunity to increase the per-hectare yield is realized through the use of genetically modified seed, it could result in an additional 2 million to 2.5 million bales being available for export next year.