KARACHI: With a substantial growth of over 78 per cent, raw cotton export has reached all time high mark of 1.66 million bales at the end of last fiscal year 2011-2012 (FY12) mainly due to bumper cotton crop in the country and high demand in the world market.
Exporters told Business Recorder on Saturday said that bumper cotton crop during the last cotton season has supported to post all time high export. While cheap availability of cotton in the domestic market and high demand on international front has also contributed to achieve this milestone.
In term of volume, Pakistan has exported some 1.66 million bales during last fiscal year as against 0.937 million bales in fiscal year 2010-2011, showing an increase of 77.8 percent or 0.729 million.
In term of dollar, raw cotton export has registered a healthy growth of over 26.65 per cent at the end of last fiscal year. The country has exported raw cotton worth $462 million in FY12 compared to $365 million in FY11, depicting an increase of $97 million.
However, month-on-month basis, export of raw cotton posted a decline of 76 percent to $3.62 million in June 2012 when compared with June 2011, in which $14.878 million worth raw cotton was exported.
“Pakistan’s raw cotton is much cheaper than that of other competitors, which forced the international buyers to procure our raw cotton”, exporters said. Massive decline in the last month of FY12 was due to slow foreign demand, however remaining eleven months export statistics are very encouraging, they said.
After touching all-time high level during the last fiscal year, raw cotton prices stood at Rs 5700 per maund in the domestic market, they said and added that till Eid-ul-Fitar cotton prices in the domestic market would surge. Still Pakistani cotton prices are some Rs 300-500 per maund less than world market, they said.
It may be mentioned here that Pakistan is the fourth largest cotton producer in the world, however it is unable to produce very high quality cotton, therefore also importing cotton from different countries. Pakistan has achieved over 14.6 million bales bumper cotton crop last fiscal year and this is expected to achieve 15 million bales mark.