The deadly flash of floodthat swept across the lands of Pakistan has wiped off the country's positiveexpectations regarding cotton exports.
Flood... A grim reminder of dangerin wilderness has destroyed more than one million bales of cotton crops, andthe Government is powerless to achieve its target of 14 million bales of annualproduction. Due to this, Pakistan, being Asia's fourth largest producer ofcotton is likely to fall back by 10-15% of its cotton production. Most of theagriculture being done on the banks of rivers, the extent of damage was more inthese localities.
The heavy deluge that swampedthrough the cotton fields, threatened the commodity's production causing it toslump. Incessant downpour has damaged the fields in Piplan Layyah, Mianwali,and Mithankot. Regions in the Central Punjab such as Rajanpur, Lyia, RahimyarKhan, and DG Khan were seriously affected losing thousands of bales of cottoncrop. Areas of Ghotki, Daherki, Sukkar, and Naushehro Feroz, Bhakkar, Jhang,Shorkot, and Mianwali were also affected by floods.
Pakistan Government fixed theannual export target as $14 billion. With the production targets being spoiledby the current catastrophe, it has become impossible doing so. The country'stextile sector will bear a burden of more than $900 million on the cottonimports from US, Brazil, and India. Export of cotton during 2009 August till2010 July was 908, 100 bales while 320, 000 bales of cotton were importedduring the same period. During 2010-11, Pakistan was expecting an increase of2.5-3.0 million bales in production, over the previous year's production of12.7 million bales. As per the declaration of Pakistan Cotton GinnersAssociation (PCGA), BT cotton variety sown in Sindh and Punjab were severelyaffected due to rain, and the resulting floods. Traders expect a relief packageto cotton farmers and compensation for the ginners for losses incurred due toflood.
Spinning mills in Bangladesh have been eyeing for raw cotton imports from Pakistan, as their cotton is at the lowestin many seasons, and Pakistan cotton comes much earlier than other countrieslike US, India, and other Central Asian States. Exporters from Pakistan have earlier agreed for exporting 15-20 thousand bales of cotton to Bangladesh. Now they are worried about their shipments.
Estimates state that losses dueto rain are marked about 1.5 million bales. There is also no guarantee that theremaining cotton in fields will have good quality. Pakistanis who import cottonare seeking to approach cotton producers from around the world. Textile made-upexporters and manufacturers are positively expecting to get cotton on easyterms. Industry analysts predict that, despite formal permission not being given,EU, and US might allow free access of textile products from Pakistan.
Villages, crops, cattle, andpeople, being washed away by the flooding waters, Pakistan is now facingunprecedented crisis. Improving the economic plight of the country has become imperativefor the Government. Losses caused by floods have pushed spot rates and cottonsales. This has not only jeopardized the cotton crops, but also the nationaleconomy. Exporters are having their eyes fixed, to see if there are any betterways to enhance their business.
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