Despite rainfall in upper Sindh and lower Punjab, one percent decline was witnessed in cotton arrival as compared to last year. Analysts said that low production of cotton was witnessed in the country due to loss caused by the heavy rains. The low international prices coupled with inventory backlog can be credited to keep the local cotton prices at bay despite the above mentioned expectation of dip in local cotton production, they said.

"We foresee the country to be able to produce 13 million bales during the current season, which will be 12 percent less on YoY," they added. During the current season, average cotton prices were seen at the level of Rs 5,775 per maund (37.324kg), declining by 22 percent YoY from Rs 7,405 per maund against the corresponding period previous year.

According to Investcap report on cotton so far total 9.58 million bales have been arrived in the market as compared to 9.65 million bales in the corresponding period previous year. Punjab has contributed 69 percent or 6.61 million bales in total cotton arrival so far, while Sindh contributed 31 percent or 2.98 million bales during the aforementioned period..

In the province of Punjab, districts of Bahawalpur, Bhawalnagar, Vehari, Khanewal and Rahim Yar Khan, accounted for 38 percent contribution towards the total production of the country, as their cumulative cotton arrivals reached to 3.6 million bales. In Sindh, districts Sanghar, Tharparker and Hyderabad cotton arrival reached to 1.84 million bales, translating into19 percent participation in country's total cotton arrival so far.

Copyright Business Recorder, 2012