USDA Overestimates Pakistan's Cotton Imports

According to foreign reports, the abundance of domestic resources in Pakistan coupled with the decline in the capacity of textile mills has led to shrinking demand for cotton imports.

According to the statistics of related departments, Pakistan’s cotton imports in March were 37,000 tons, a decrease of 38.1% year-on-year. In addition, the increase in the price of imported cotton also restrained the purchase demand of textile mills. In March, the average unit price of imported cotton was 96 cents/lb, an increase of 8.3% year-on-year. In the past 22 months, the change in cotton prices has been inversely related to the number of imported cotton.

In the first eight months of this year, Pakistan’s cotton imports totaled 208,000 tons, a decrease of 30.1% year-on-year. According to the import target of USD 454,000 tons, Pakistan will need to import 84,000 tons every month for the next four months. However, as Pakistan's rupee remains firm against the US dollar, cotton yarn production is unlikely to increase substantially. The USDA may overestimate Pakistan’s cotton imports.