KARACHI: Cotton crop arrivals at ginning factories hit a tailspin as output faces a shortfall of 0.664 million bales or 26.41 percent compared to the same period last year, reported The News.
Pakistan Cotton Ginners Association (PCGA) data showed cotton arrivals by September 15 were recorded at 1.852 million bales, down 26.41 percent, compared with 2.517 million bales during the same period last year.
The slow arrival of crop in the local markets could be attributed to prevailing market-forces-driven rates that growers said were hardly viable for them and would remain so until the announcement of a fair support price by the government.
Naseem Usman, chairman Karachi Cotton Brokers Association, said, “It is an alarming situation for the textile sector of the country, while shortage is expected to go beyond 26 percent in the season”.
Cotton arrivals from Sindh recorded a shortage of 18.42 percent to 1.852 million bales against 1.537 million bales arrived in the factories by September 15 last year.
Arrivals from Punjab were down 38.96 percent to 598,314 bales, compared with 980,139 bales in the corresponding period a year ago.
The government had officially announced to fix indicative price of Rs4,000 per 40kg for phutti (seed cotton) to encourage growers to bring more area under cotton cultivation. However, the government failed to set the price at announced level.