Page 13 - TEXtalks October/November 2021

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Cotton Update: Pakistan among key players

The 2020/21 cotton season was disappointing for the producer of cotton in the world. It also has the
cotton industry globally. Covid-19 significantly third-largest cotton spinning capacity in Asia (after
affected the global supply chain and damaged the China and India), with thousands of ginning and
world economies. However, things are getting back spinning units producing textile products from cotton.
to normal. According to the International Cotton Therefore, the upcoming season’s cotton production
Advisory Committee (ICAC), cotton production is recovery news is expected to take Pakistan’s
poised for full recovery, with a 6% increase expected activities back to normal.
for 2021/22. Pakistan has been identified among key
players to boost cotton production. Pakistan is the fifth-largest producer of cotton in the
world. It also has the third-largest cotton spinning
Current projections show an increase of 6% in global capacity in Asia (after China and India), with
production in 2021/22 vs. the prior season, which is thousands of ginning and spinning units producing
good news for the cotton and textile sector. Three of textile products from cotton. Therefore, the upcoming
the world’s top five producers (Brazil, Pakistan, and season’s cotton production recovery news is
the USA) are showing increases in production vs. expected to take Pakistan’s activities back to normal.
2020/21, and while that will not quite bring things Pakistan Cotton Ginners Association has released
back to ‘normal,’ it is a sign that the industry’s data on cotton production until November 15, indicating
recovery is still in full swing. Although world cotton a 70% rise in the cotton received at ginning factories.
production is expected to increase by 6% in 2021/22, The country has recorded a massive increase of 2.8m
the estimate of 25.7 million tonnes is still lower than it bales, with Sindh leading the production.
was pre-pandemic. The key highlights of the current
update from ICAC include: The highest cotton arrival was seen in Ghotki, which
World production is poised to show a 6% received 303,700 bales and recorded a 107%
year-over-year increase vs. 2020/21 year-on-year growth. Naushero Feroze received
The surge is being led by three of the world’s top five 300,900 bales and recorded 85% growth, while
producers: the USA, Brazil, and Pakistan Nawabshah received 186,700 bales but recorded the
West Africa is poised to post an impressive 48% highest year-on-year growth of 216% within Sindh.
increase vs. the prior season Meanwhile, Punjab has seen 59% year-on-year
growth, though yield grew incredibly in Bhakkar and
All countries report increased cotton production while Lodhran, which registered over 300% year-on-year
the West Africa region is up nearly 48% vs. the growth. Bhakkar had produced only 3,700 bales last
2020/21 season. The Secretariat’s current price year, and Lodhran only 19,700 bales. This year, the
forecast of the season-average index for 2021/22 highest number of bales in Punjab came from
ranges from 87 cents to 126 cents, with a midpoint at Layyah, which produced 181,300 bales and
104.26 cents per pound. Pakistan is the fifth-largest recorded a 163% year-on-year growth.

October/November 2021