Pakistan's cotton crop forecasts up for 2012/13

Pakistan’s MY 2012/13 cotton crop is forecast at 11 million (480 lb) bales, 10 per cent higher than the adjusted current marketing year production level and the second largest harvest on record.

Pending no major flooding problems, cotton area harvested in MY 2012/13 is forecast at 3.3 million hectares, 10 per cent higher than this year.

The early sowing of cotton is projected to be higher this year as many farmers opted to not grow wheat or sunflowers as a rotational crop. In 2012, the Government of Pakistan (GOP) approved 11 biotech and three conventional varieties of cotton, which will be available for commercial cultivation during the 2012/13 planting season.

Pakistan’s cotton consumption for MY 2012/13 is forecast at 11.5 million (480 lb) bales, 10 per cent higher than Post’s revised estimate for MY 2011/12. Cotton consumption in MY 2011/12 remained unchanged against last year’s consumption of 10.5 million bales.

Pakistan is a net importer of cotton due to strong domestic demand for better grades of cotton. Pakistan’s MY 2012/13 imports are projected at 1.3 million bales, 13 per cent lower than MY 2011/12.

The Government of Pakistan follows a free trade policy for cotton with no quantitative restrictions or duties on either imports or exports. The proposed EU waiver on custom duties is expected to enhance cotton consumption and trade. The grant of GSP status to Pakistani Textiles is also being considered by EU. Ending stocks are forecast to remain tight at 2.8 million bales.