According to the data of Pakistan Cotton Processing Association, as of February 1, the cumulative market volume of seed cotton in 2022/2023 was about 738000 tons of lint, a year-on-year decrease of 35.8% compared with the same period last year, which was the lowest level in recent years. The year-on-year decline in the market volume of seed cotton in Sindh Province of the country was particularly prominent, and the performance of Punjab Province was also lower than expected.
Pakistan cotton mill reported that the early cotton planting area in the southern part of Sindh Province has started to prepare for cultivation and planting, and the sale of seed cotton in 2022/2023 is also about to end, and the total cotton production in Pakistan may be lower than the forecast of the United States Department of Agriculture. Because the main cotton producing areas are greatly affected by the long-term rainfall during the growing period this year, not only the cotton yield per unit area and the total yield decline, but also the difference in the quality of seed cotton and lint in each cotton area is very prominent, and because the supply of cotton with high color grade and high index is in short supply, the price is high, but the farmers’ reluctance to sell runs through the whole 2022/2023 cotton purchasing season.
The Pakistan Cotton Processing Association believes that the contradiction between insufficient cotton production and demand in 2022/2023 in Pakistan will be difficult to alleviate due to continuous fermentation. On the one hand, the cotton purchasing volume of Pakistan textile enterprises has decreased by more than 40% year on year, and the stock of raw materials is seriously insufficient; On the other hand, due to the continued sharp depreciation of the Pakistani rupee against the United States dollar, and the obvious shortage of foreign exchange, it is increasingly difficult to import foreign cotton. With the easing of worries about economic recession risks in Europe and the United States, and the accelerated recovery of consumption after the optimization of China’s epidemic prevention and control measures, Pakistan’s cotton textile and clothing exports are expected to see a strong recovery, and the rebound in cotton and cotton yarn demand will intensify the cotton supply pressure in the country.
Post time: Feb-15-2023