Analysis: Heavy rains deserted cotton
By Riffat Mughal
KARACHI: Ample rainfall became a curse for Pakistan cotton as it hit
worst due to heavy rains and floods in Sindh and Punjab resulting
damage of 1.5 million to 2 million bales of cotton.
In current year, Pakistan was expected to have a bumper crop of
around 16 million bales of cotton and healthy export earnings. But
unfortunately, rain aftermaths not only reduced production to 14 million
bales and restricted exports but also pushed up cotton prices in both
local and international markets.
In Pakistan, cotton prices have taken upward drive as prices have
reached to Rs 7,000 from Rs 6,000. Rising international cotton prices
further deepened the impact and make buyers cautious that caused dull
activities at cotton market.
On international stance, China has entered into international yarn
market and US announcements to influx $447 billion for new jobs creation
would likely to push global lint prices up which could further brace in
upcoming sessions in local market.
Rising cotton prices are beneficent for the farmers and growers who
will get high prices for their crop but on the other hand, mills and
exporters will remain cautious as this will increase their cost of
production which will reduce their profits.
Unavailability of quality cotton at lower rates has frightened
exporters and textile mill owners as this would hinder their supply to
meet demands. The impact of demand and supply gap likely to be triggered
in textile industry
In such scenario, this is state responsibility to educate farmers and
persuade them to take preemptive measures to protect the crop which is
not affected by the rains as stagnant water would attract multiple
insects which could harm rest of the crop.
Therefore farmers should use pesticide to save crop from further damage.
Government should take an emergent stance to protect rest of the crop
by providing loans, make sure availability of fertilizer and other
agricultural products at lower prices. Around 200,000 acres of land was
affected, making lives of farmers and growers badly affected as they not
only lost their crops, farms but their houses too. They have no shelter
even food, to encourage and motivate them government should provide the
support otherwise they would not indulge in farming activities any
more.http://www.halaltamweel.com/1213/PAKISTAN-COTTON-Update.aspx
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