Spinning Sector Overview
SPINNING | PAKISTAN COTTON DYNAMICS
AREA UNDER CULTIVATION | COTTON ARRIVALS
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Cotton crop competes directly with rice, a major export crop, and sugarcane.
The support price by government coupled with its high disease resistance
makes sugarcane a strong competitor. Resultantly, Pakistan's area under
cultivation for cotton crop has declined by ~375,000 (13%) hectare since FY16.
Meanwhile, cotton yield remained stagnant over the last few years.
In line with above-mentioned factors, Pakistan's cotton arrivals declined to
8.6mln bales in FY20 from high of 14.8mln bales in FY15.
Pakistan achieved ~96% (i.e. ~2.2mln hectare) against proposed sowing target
of ~2.3mln hectare in FY20. The cotton crop has been impacted by abnormal
weather conditions so far. Hence, the quantity and quality of output is
expected to deteriorate. Pakistan is expected to produce ~7-8mln bales in
current harvesting season.
Province
Punjab
Sindh
KPK
Region
Punjab
12
PACRA
Area Under Cultivation (000 Hec.)
FY16
FY17 FY18 FY19
FY20
2,243
1,815 2,053 1,888
1,889
621
637
612
448
599
0
0
0
0
0
Baluchistan
38
37
35
37
39
Total
2,902
2,489 2,701 2,373
2,527
Pakistan Cotton Arrivals (Min. Bales)
FY 16 FY17 FY18 FY19
FY20
6
6.9
7.3
6.6
5.1
Sindh
Total of
Pakistan
3.8
3.8
4.3
4.1
3.5
9.8
10.7
11.6
10.7
8.6
Cotton Unit Conversion
Unit
1 Bale
1 MT
Conversion
170kg
1,000kg
Source: PCGA, PCCCView entire presentation