Cotton Arrivals in Pakistan Drop 59% in September 2024

ISLAMABAD: Cotton is a crucial crop for Pakistan, especially for its textile industry, which is a significant part of the country's economy. However, recent reports indicate a troubling trend. As of September 30, 2024, cotton arrivals in Pakistan have plummeted by an alarming 59% compared to the same time last year. This information comes from the Pakistan Cotton Ginner’s Association (PCGA), which released the data on Thursday.

In numbers, total cotton arrivals reached only 2.04 million bales this September, a sharp decline from 5.025 million bales in September 2023. This means that there are 2.985 million fewer bales available this year. While this sounds concerning, there is a silver lining: on a fortnightly basis, cotton arrivals improved by 42%, increasing from 1.434 million bales recorded on September 15, 2024. This indicates that while the overall situation is dire, there may be signs of recovery.

The decline in cotton arrivals is particularly worrisome because cotton is a vital raw material for the textile industry, which plays a significant role in Pakistan's exports. The textile sector has been facing challenges, including falling demand and rising energy prices. The All Pakistan Textile Mills Association (APTMA), which represents the largest industrial sector in the country, has been vocal about the need for government intervention. They have urged the government to remove cross-subsidies that benefit nonproductive sectors, which could help stabilize the textile industry.

Recently, APTMA leaders met with Minister of State for Finance Ali Pervaiz Malik to discuss the ongoing challenges facing the textile industry. They expressed their concerns about a significant underperformance in exports, which are currently lagging by $9 billion from the sector's potential. This underperformance is alarming and highlights the urgent need for strategic measures to boost the industry.

Looking at the provincial breakdown, both Punjab and Sindh have reported notable declines in cotton arrivals. In Punjab, arrivals fell to 0.727 million bales, a 65% drop from 2.069 million bales during the same period last year. However, there was a positive development in Punjab, with a 35% increase in cotton arrivals compared to the previous fortnight. In Sindh, the situation is similarly concerning, with a 56% drop in arrivals, bringing the total to 1.313 million bales compared to 2.956 million bales last year. Yet, like Punjab, Sindh also saw a significant fortnightly increase, with arrivals rising by 47% from 0.895 million bales reported on September 15.

While the cotton arrivals in Pakistan have seen a drastic decline, the recent fortnightly improvements offer a glimmer of hope. It is essential for stakeholders in the textile industry to work closely with the government to address the challenges they face. By doing so, they can help ensure that the textile sector remains a vital part of Pakistan's economy, providing jobs and contributing to the nation's exports. The road ahead may be tough, but with collaboration and strategic planning, there is potential for recovery and growth.