Bloomberg
Farhan Sharif
Farmers in Pakistan, the world’s fourth-largest producer of cotton, may increase planting this year after domestic prices rose to a record and a global economic revival lifts demand from textile makers.
Output may increase to a record 16 million bales, Abdul Rasheed Khan, chairman of the Pakistan Cotton Ginners Association, said in a telephone interview from Multan.
Pakistan produced 12.7 million bales this season, in line with the government’s revised target, compared with an output of 12.1 million bales last year, Khan said. The government had initially set a target of 13.5 million bales.
Domestic prices rose to a record 5,750 rupees ($68 U.S.) for 37.32 kilograms (82.3 pounds) on March 8, according to the Karachi Cotton Association.
Pakistan may need to import as much as 2 million bales this year to meet rising demand from textile makers, Khan said. Mills have so far bought 800,000 bales from overseas, mostly from India, he said.
Pakistan’s textile exports, which account for two-thirds of the nation’s overseas sales, rose 2.4 percent to $5.95 billion in the seven months ended January 31, according to the Federal Bureau of Statistics. The government plans to increase textile exports to $25 billion by 2014.
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