Pakistan’s cotton arrivals fell by 17% year-on-year to 887,400 bales by August 15, with a significant decrease in Punjab’s production raising concerns about the outlook for domestic cotton production, according to data released by the Pakistan Cotton Ginners Association (PCGA).
Punjab, which had seen a 3% increase in arrivals by July 31, experienced a reversal by mid-August, with arrivals now 6% lower than the same period last year. In contrast, Sindh, which was behind by 47% in cotton arrivals at the end of July, has narrowed the gap to 24%.
Industry leaders attribute the decline to recent rains that damaged the quality of cotton, resulting in reduced demand from textile mills and forcing several ginning factories to halt operations. Ihsanul Haq, Chairman of the Cotton Ginners Forum, expressed hope that improved weather conditions would help resume ginning activities in Punjab.
As of mid-August, Punjab had 113 ginning units operating, compared to 131 in Sindh. Between August 1 and 15, Punjab’s ginning factories processed only 68,000 bales, a sharp drop from 156,000 bales in the previous fortnight. Sindh, however, saw a rise in ginning activity, processing 226,000 bales, up from 140,000 bales during the same period.
Of the total 887,400 bales received nationwide, textile mills had purchased 806,000 bales by August 15, leaving 81,000 bales unsold. A discrepancy has been noted between the PCGA and Punjab Crop Reporting Service, with the latter reporting 809,000 bales of cotton produced in Punjab by August 14, a figure 118% higher than the PCGA’s reported arrivals.