Exporters of Pakistan Sign deals on 0.65Mln bales
Pakistan Times Business & Commerce Desk

KARACHI: The local cotton exporters have succeeded to acquire orders of over 600,000 bales mostly from Southeast Asian countries while exporters said orders are likely to cross one million mark by the end of current fiscal year.

The cotton exporters, who have so far booked orders of around 650,000 bales, said that Thailand, Singapore, South Korea and Bangladesh are among top buyers of the Pakistani bales during the ongoing 2004-05 season.

“Till last year we used to sell cotton at 60 cents per pound,” said Ahmed Saleem, an exporter. “But this year maximum prices stand at 42 cents because of declining prices world-over.”

But he said overall amount from cotton export may go beyond the last year’s figures due to increased number of exported bales and average prices offered by international market.

The local traders said the record production of the cotton bales and lower prices are helping in attracting big buyers of Pakistani cotton.

The country’s cotton production is expected to touch all-time high figure this season as latest figures compiled by the Pakistan Cotton Ginners Association (PCGA) suggest that growers have managed to produce a record 14.016 million bales of cotton up to February-1.

Exporters said despite lower prices of the commodity in international market due to record production world-over they had been able to finalise profitable deals with foreign buyers.

“We are being offered average prices,” said Anwar Yasin, a senior member and former vice chairman Karachi Cotton Association (KCA).

Consumption to increase: “The prices may go up as cotton demand is increasing internationally due to higher consumption by textile industry in the wake of post-quota regime.”

He said China, which tops in cotton production, still needs over 7 million bales extra to meet local industry’s demand, which has lifted hopes of cotton exporters world-over including Pakistan.

The International Cotton Advisory Committee (ICAC) has forecasted all-time high world cotton production this season at 110.9 million bales. China is predicted to top among five big producers of the commodity with the United States, India, Pakistan and Brazil.

The record production capped prices to less than 50 cents per pound level internationally. New York cotton futures stands 42.86 and 43.54 cents per pound for both the ruling March and the forward May settlements respectively.

But local exporters see the record production as blessing at the time of quota removal, which has increased the demand of the commodity significantly.

“It is really a fortunate thing,” said Sohail Nasim, vice chairman KCA. “This year the world production is very much high while the same year brings new quota free trade in textile products. So, ultimately declining prices are not going to hurt deals very much, as the demand has jumped.”

He said exporters have managed to ship record two million bales back in 1991-92, when country achieved production record of 12.8 million bales for the first time.

The federal committee on agriculture initially set the target of 10.72 million bales across the country but the Standing Commi-ttee on Cotton Crop Assessment last month revised the target to 14.6 million bales.

The latest PCGA assessment said that Sindh province has managed to produce well over 2.912 million bales and Punjab has produced over 11.104 million bales up to February-1.●