Pakistan produced 14.5 million cotton bales about a decade back. Production has been constantly on the decline after that. This year cotton production slumped to 4.8 million bales only.
The crop was 2.9 bales shorter than last year. A decade back the local mills consumed 16-18 million bales and the industry used to import 1.5-2 million bales. Cotton consumption in Pakistan also declined to 13-14 million bales. After this year’s crop failure, the industry would have to import around 7 million bales. Some bigger players have already placed orders for 5 million bales. Most placed orders when the global cotton prices were high and would find it hard to recover costs on prevailing yarn rates. The prices have come down from $1.20 per pound to $0.85 per pound.