Pakistan Cotton Production Estimated to Drop Marginally

USDA Foreign Agricultural Service

PAKISTAN – For the current market year (2013/14), cotton production is estimated to be 9.2 million bales, marginally down than last year due to a five per cent decrease in cotton area. Cotton sowing was affected by wet spell during sowing season coupled with less availability of quality seed.

Pakistan’s MY 2014/15 cotton crop is forecast at 10.3 million (480 lbs.) bales, twelve per cent higher than the MY 2013/14 production level of 9.2 million bales. The increase is due to a higher cotton area (forecast at 3.04 million hectares (ha), or 6 per cent higher than the last year) and an increase of the use of Bt cotton varieties to 95 per cent of the total 2014 crop area to 2.9 million ha.

The increased acreage is due to area substitution from other Kharif (crops sown in the rainy (monsoon) season for autumn harvest) such as sugarcane and corn. Pakistan’s cotton consumption for MY 2014/15 is expected to reach 12 million bales, marginally higher than the current year’s estimate and 9 per cent higher than the consumption level of MY 2012/13 due to stronger textile industry demand resulting from the GSP plus status given by the EU.

Pakistan imports generally account for about one third of its demand for cotton and depend on the size of the domestic crop and the export forecasts of the growing textile and yarn sector. Much of the imports are of cotton that is of higher quality in order to meet the textile industry’s needs.

Pakistan’s MY 2013/14 imports are revised at 3.37 million bales, up 53 per cent over MY 2012/13 estimates of 2.2 million bales due to last year’s decrease in production and to meet the increased demand for textiles to be exported duty free under the GSP Plus (Generalized System of Preference) status granted to Pakistan by EU.

MY 2014/15 consumption is forecast at 12 million bales, marginally higher than the current year’s estimates of 11.9 million bales and 9 per cent higher than the consumption level of MY 2012/13.

The Government of Pakistan follows a free trade policy for cotton with no quantitative restrictions or duties on either imports or exports. Beginning in January, 2014 Pakistan became eligible for GP plus trade status with the EU which is anticipated to increase cotton imports and textile exports.

During MY 2014/15 post projects a significant import of ELS/Pima cotton in order to fulfill high end export commitments. Ending stocks are forecast to remain at 3.5 million bales.

Source: Federal Bureau of Statistics, Government of Pakistan


Further Reading

You can view the USDA GAIN: Pakistan Cotton and Products Annual 2014 report by clicking here.

TheCropSite News Desk

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