KARACHI: The ginning industry has stocks of 2 lakh bales of unsold cotton during the year 2023-24.
Despite the overall cotton production in Pakistan falling short of the set target during the year 2023-24, the ginning industry has reserves of 2 lakh bales of unsold cotton due to increased cost of production and uncertainty in the local textile industry. The ginning industry has also become a victim of anxiety while there is a trend of unusual delay in cotton cultivation in most of the cotton zones due to unfavorable weather for cotton.
Chairman Cotton Ginners Forum Ehsanul Haq said that according to the latest data of Pakistan Cotton Ginners Association till February 29, with an increase of 72% in the local ginning factories, a total of 83 lakh 93 thousand bales of cotton has been delivered to the ginning factories. But it is 32% less than the set target, while the special thing about these figures is that the production will be less than the general expectations, i.e. 85 lakh bales. He said that the production of cotton in Punjab is 43% more than the previous year, while in Sindh it is a record 119% more.
According to the report, textile mills have purchased a total of 78,92,000 bales of cotton from ginning factories in the period under review, while exporters have purchased 2,93,000 bales of cotton, but surprisingly, ginning factories still have 2,000,000 bales. There is an unsold stock of cotton bales of more than This indicates that the local textile industry is facing severe liquidity problems.
According to the announcement of PCGA, instead of March 18, the final cotton production figures will be released on April 3, 2024, and it is expected that during this month, the equivalent of 30,000 bales of cotton will be produced by the ginning factories. I will arrive.
It may be noted that domestic production of cotton in 2022-23 was at an all-time low of 49 lakh bales.
