20000104

Drop in cotton

arrivals points to

short production

RECORDER REPORT

KARACHI: The arrivals of cotton have dropped significantly indicating decline in the target of overall production, ginners in Karachi said on Monday.

They said both in Sindh and Punjab the arrivals of cotton at the ginneries have came down significantly which migh result in below expectation poduction.

The Cotton Assessment Committee had fixed a target of 11 million bales for the current season.

"Just 20 days back, the arrivals were up to the target but then the arrivals dropped sharply," said a ginner in Karachi.

Members of Karachi Cotton Association were found informed that the pace of cotton arrival has slowed.

"The ginning factories, both in Punjab and Sindh are receiving phutti at much lower pace than it was 20 days back," ginners said.

They estimated that cotton production this year will be about 9.5 million bales.

"On the basis of arrivals and other information, we can safely say that the target of 10.5 or 11 million bales is no more realistic. It will not exceed 9.5 or 9.6 million bales," said a well informed ginner and former chairman of KCA.

The target of 11 million bales produced negative impact on cotton prices which remained at half of what they were last year.

The ginners said that over 2 million bales were lying unsold and their factories had turned into warehouses of raw cotton.

They claim that they are unable to pay to growers, and the growers, find it extremely difficult to arrange the inputs for the next crop mainly because of shortage of liquidity.

The ginners complained that the wrong figures of high production had badly damaged the price mechanism and the growers could only get 50 percent of what they received last year.