That Pakistan’s cotton output has fallen precipitously off a cliff needs no demonstration. According to official statistics, between FY16 and FY21, output fell by exactly half, barely retaining country’s slot among top five global producers. Although area under cultivation also fell by a quarter during this six-year period, it is a common mistake to blame the falling output on acreage.

Across the globe, leading cotton producing regions have increased cotton output not on the back of cultivated area, but by improving crop productivity, measured in yields per hectare. Over the last three decades, global cotton output has increased by over 50 percent as yields have made dramatic gains–increasing by over 5 times for Brazil, and by twice in China. In fact, productivity improvements have freed up land for plantation of other important competing crops, leading to hard won surpluses in global grain production.

 

As per a Daily Times report, Pakistan’s garment and apparel exports grew 9.06 percent to USD 11.35 billion in Q1FY21 from 10.41 billion in the corresponding period last year. The country’s low export base helped boost yearly exports even though exports on a month-on-month basis declined by 1.3 percent, reveal the Pakistan Bureau of Statistics.

 

During the financial year up to April’12, Pakistan’s textile exports grew to USD 1.337 billion. Exports by both value-added textiles and basic textiles group grew in triple digits during the month. During the first 10 months, Pakistan’s textile exports grew 17 percent to reach USD 12.7 billion. Exports of basic textiles such as cotton yarn and fabric also grew along with value-added textiles. Growth in value-added category was dominated by knitwear, bed wear and home textiles.

 

ICE cotton futures stabilised on June 29 near the highest in more than two weeks hit during the previous session, as market participants awaited quarterly crop data from the U.S. Department of Agriculture that was expected to show a drop in plantings of the natural fiber. Cotton contracts for December rose 0.02 cent, or 0.02 percent, at 87.45 cents per lb, at 11:56 a.m. EDT (1556 GMT), after hitting their highest since June 11 in the previous session.

 

A drop in acres used for cotton would indicate a tightening of supply for the natural fiber, and likely add momentum to prices.

 

The U.S. Department of Agriculture’s (USDA) weekly crop progress report on June 28 showed 52 percent of the crop was in good to excellent condition, identical to a week ago. Total futures market volume fell by 4,444 to 10,510 lots. Data showed total open interest gained 2,444 to 213,527 contracts in the previous session.

 

The Spot Rate remained unchanged at Rs 12600 per maund. The rate of Polyester Fiber was increased by Rs 3 per kg and was available at Rs 210 per kg.