Pakistan Cotton Area Seen Expanding

ISLAMABAD - Jan 20/04 - SNS -- Cotton seedings are expected to rise 4% this year in Pakistan to an estimated 3.2 million hectares for a potential 1.96 million MT harvest.

The increase stems from higher returns for cotton relative to competing crops coupled with problems farmers encountered marketing the current sugarcane crop.

They complain about delayed payments from sugar mills, depressed market for sugarcane (whose price declined 10% in 2003-04 following a 50% drop in 2002-03), should encourage diversion of additional acreage towards cotton production in the new year, notes the U.S. agricultural attache in a report on the sector.

Unlike for sugarcane and rice (alternate crops for cotton), in 2003-04 farmers received good returns on seed cotton. The farm-gate price for 2003-04 seed cotton is up 40% over the 2002-03 level, averaging between Rs. 1,050-1,400 per maund (37.324 kilograms) or about 21 cents per lb. at the current exchange rate of USD 1.00 = Rupees 57.50.

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