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Pakistan’s cotton trade to improve even as area harvested decreases

Pakistan is expected to witness an improvement in its cotton trade in the next few months, despite a reduction in cotton area harvested from 2.20 million hectare (HA) in market year (MY) 2020-21 to 1.9 million HA in MY 2021-22. However, the production will increase due to favourable weather conditions and adequate supply of water, fertilisers and pesticides.

The country’s cotton prices have appreciated, thus motivating the farmers to achieve better yield with the help of enhanced agronomic management practices.

Pakistan produced 6.20 million 480 lb bales in MY 2019-20, which dropped by 27.42 per cent to 4.50 million 480 lb bales in MY 2020-21, according to TexPro, Fibre2Fashion’s market analysis tool. The production is now expected to increase by 17.78 per cent to reach 5.3 million 480 lb bales in the MY 2021-22.

The country imported 3.98 million 480 lb bales of cotton in MY 2019-20 and 5.30 million 480 lb bales in MY 2020-21. The imports may rise further by 5.66 per cent to 5.60 million 480 lb bales in MY 2021-22.

Pakistan relies on raw material imports to fulfil the rising global demand for finished products. Its government’s stand on tax relief, lower energy prices and subsidised financing also supports cotton raw material imports.

The total domestic cotton consumption of Pakistan increased from 9.23 million 480 lb bales in MY 2019-20 to 10.43 million 480 lb bales in MY 2020-21. The consumption will increase slightly by 1.92 per cent to 10.63 million 480 lb bales in MY 2021-22.

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