The stable output of Pakistan's cotton planting area is expected to increase

According to the latest report of the U.S. Counselor of Agriculture, due to the high income of competing crops that limits the increase in cotton planting area, the cotton planting area in Pakistan is expected to remain at 1.8 million hectares in 2023/24, which is consistent with this year, but after the major floods in 2022/23, Cotton yields are expected to return to normal, so next season's cotton production is expected to reach 5.3 million bales, a year-on-year increase of 36%.

At present, Pakistan's 2022/23 cotton harvest has been completed, and the cumulative amount of cotton received by ginning plants has decreased by 35% year-on-year, of which Punjab Province has decreased by 24% and Sindh Province has decreased by 47%.

 

After a sharp decline in 2022/23, Pakistan's domestic cotton consumption and textile exports are expected to rebound in 2023/24. As inventories in major textile importing countries decline, buyers will start placing orders to Pakistan. Textile production is expected to pick up later this year, and domestic consumption in Pakistan is expected to reach 9.3 million bales next year, a year-on-year increase of 3%.

 

Nevertheless, cotton consumption and textile production in Pakistan are still not very bright due to factors such as serious shortage of foreign exchange, difficulty in importing raw materials and machinery and equipment, currency depreciation, rising energy prices, inflation and high tariffs. In addition, as Pakistan's cotton production is expected to exceed demand next season, cotton imports are expected to remain unchanged.