February 17, 2012

 

Pakistan may export 1.2 million bales of cotton

 

 

For the year 2011-12, Pakistan is seen to export 1.2 million bales of cotton, four million tonnes of rice and two million tonnes of wheat.

 

The estimated output is about 14 million bales of cotton, 6.8 million tonnes rice and 25 million tonnes of wheat.

 

Well-placed sources told Business Recorder here on Wednesday (Feb 15) that due to cotton crop damages in Sindh, the total production of the crop was expected to be not more than 14-14.5 million bales.

 

"Cotton is being sold at US$0.93 per pound in the international market which means that in the local market its price must be not less than PKR7,000 (US$77.08) per maund but the overall situation is quite different.

 

In the domestic market, the commodity is being sold at PKR5,300-5,800 (US$58.36-$63.87) per maund", sources added.

 

"Pakistan has so far exported 0.8 million bales of cotton while it is expected to export around 1.2 million bales of thereby contributing up to PKR40 billion (US$0.44 billion) to the national exchequer.

 

Out of 0.8 million cotton bales, 150,000 bales have been exported to India at US$0.55-65 per pound", sources revealed.

 

Sources said that total rice exports so far were 2.3 million tonnes adding 1.3 billion dollars to the national exchequer.

 

"We are expecting the rice exports worth US$2 billion for 2011-12," they further revealed.

 

Because of increased output in Asia, notably in China and India, global rice production is projected to be 459 million tonnes in 2011/12.

 

"Pakistan was expected to earn US$2.5 billion during the current fiscal year but due to increase in rice production in India and China, overall export revenue from rice would not be more than US$2 billion", sources said.

 

Pakistani rice is considered among the best quality rice in the world and the need of the hour is to increase the marketing of our rice through commercial attaches in international market.

 

"For the next three years, our target is to earn dollar US$4 billion through rice exports", sources added.

 

The production of a crop mainly depends upon three factors: use of fertilisers, use of water and use of certified seeds.

 

Unfortunately, the farmers in Pakistan are deprived of adequate use of fertilisers, water and certified seeds used to enhance crop production.

 

The poor farmers will have to pay about PKR60 billion (US$0.66 billion) as General Sales Tax (GST) this year on the purchase of fertilisers, pesticides, farm machinery and tractors.

 

The wheat production target is estimated to be 25 million tonnes.

 

While according to sources, it would be not more than 23 million tonnes due to a considerable reduction in wheat sowing area.

 

"The total wheat stocks available with PASSCO and the provincial food departments are five million tonnes and till the arrival of the new wheat crop in April, one million tonnes would be utilised.

 

If Pakistan gets 23 million tonnes of wheat crop rather than 25 million tonnes, even then it would be able to export two million tonnes which would add around PKR55-60 billion (US$0.61-$0.66 billion) to the national exchequer", sources added.

 

"Worldwide wheat production in 2011-12 is expected to be around 690 million tonnes against the global consumption of 681 million tonnes", sources said.