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Pakistan's cotton imports likely to be high till July 2017

Cotton imports by Pakistan are expected to be high this year up to July 2017, as erratic weather is bound to force farmers in the world's fourth-biggest cotton producing country to cut down on the area under the crop. A supply crunch in Pakistan, at a time when back-to-back droughts have taken a toll on output in India could boost global cotton prices from their current near 11-month high. The two countries have already taken turns this year to buy from each other to fill shortages at home.

Saleem Saleh, Acting Secretary General of All Pakistan Textile Mills Association (APTMA) says cotton area in Pakistan is down around 15 per cent. Despite the government and industry's efforts, farmers in top-producing Punjab have reduced area. Unpredictable weather, such as floods late last year as well as poor rainfall in recent months and the resultant uncertainty about yields has forced many farmers from cotton seed sowing, stymieing Pakistan's efforts to boost local output.

The country's cotton output fell by a third to 9.7 million bales in 2015/16, forcing it to import a record 4 million bales in the year, up from 1.2 million a year ago. The country consumes around 15 million bales annually. Even for the season starting August 1, weather has not been supportive and the crop in Punjab has already been hurt by poor rains in May and June, it has been revealed. Cotton sowing in Pakistan starts from April and harvesting begins in July. While the country has set a production target of 14.1 million bales for the new season, industry officials say output will fall short and that rainfall over the next few weeks will be crucial in determining yields. Typically lower output in Pakistan gives an importing opportunity from India. In fact, the latter shipped out about 6.5 million bales this season with Pakistan taking nearly 2 million of it.

 
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