KARACHI: Federal Minister of Trade Jam Kamal Khan has emphasised the need to intensify efforts for the restoration of the cotton crop.
Newly elected officials of the Pakistan Cotton Ginners Association are meeting with relevant authorities to discuss ways to revive the crop. They are also demanding the elimination of various taxes on the production of ginning factories.
Cotton prices have seen fluctuation, but there has been an improvement after the decline, and business volumes have increased.
Head Transfer of Technology Central Cotton Research Institute Multan Sajid Mahmood said that Pakistan’s Central Cotton Committee (PCCC) latest cotton varieties have impressive yield potential. However, cotton production has decreased by 50% compared to last year due to several negative factors.
The local cotton market experienced a mixed trend last week. At the start of the week, an increase in Phutti supply led to ginning units selling more cotton, resulting in lower prices. Textile spinners took advantage of the low prices and increased their purchases, improving business volumes. However, as cotton supply decreased later in the week, prices began to rise.
Meanwhile, the international cotton market was dominated by a bearish trend. Despite this, the textile sector’s current position remains stable, influenced by factors such as fluctuating cotton supply, textile spinners’ buying behaviour, global market trends, and local demand and production.
The market is currently experiencing a financial crisis, and yarn parity has not been established. However, there is hope for some flexibility in IPP (Independent Power Producer) issues and a possible decrease in interest rates. Encouraged by these expectations, textile mills are purchasing more cotton.
Currently, cotton quality is also improving day by day. Most ginning factories have started operating, and it is expected that cotton arrivals will further improve in the coming days.
Despite this, cotton farmers appear concerned due to overall low cotton prices, which prevent them from getting the correct price for their produce. The fluctuations in cotton prices affect Phutti prices, resulting in farmers not receiving fair compensation.
Last Friday, World Cotton Day was observed globally, including in Pakistan, where various organizations related to the cotton industry marked the occasion. They presented proposals for the revival of cotton production.
Pakistan’s cotton crop has been declining for several years, worsening with each passing year. Experts warn that neglecting cotton revival efforts will exacerbate the crisis in the coming years. To address this, all organisations connected to the cotton industry must take serious steps to increase production. This year, Pakistan’s cotton production is expected to be around 60 to 65 lac bales.
To meet domestic textile mills requirements, approximately 60 to 70 lac bales will need to be imported. Additionally, large quantities of cotton yarn are also being imported. The total cost of importing cotton and yarn will be around $2.5 billion.
Pakistan’s textile sector, which contributes significantly to the country’s economy, relies heavily on cotton. Revitalizing cotton production is crucial for the industry’s sustainability and the national economy.
The rate of cotton in Sindh is in between Rs 17,800 to Rs 18,000 per maund, while Phutti price is in between from Rs 7,000 to Rs 8,400 per 40 kg. The rate of cotton in Punjab is in between Rs 17,800 to Rs 18,200 per maund. The rate of cotton in Balochistan is in between Rs 17,800 to Rs 18,000 per maund, while Phutti price is in between Rs 7,500 to Rs 9,300 per 40 kg. The Spot Rate Committee of the Karachi Cotton Association maintained the spot rate at Rs 18,000 per maund
Chairman of the Karachi Cotton Brokers Forum, Naseem Usman, informed that the international cotton market also exhibited a mixed trend. The New York cotton futures price ranged between 72 and 73 American cents per pound.
According to the USDA’s weekly export and sales report for the year 2024-2025 eighty nine thousand and six hundred bales were sold. Vietnam topped the list with fifty six thousand and six hundred bales only.
Mexico secured the second place with eleven thousand and seven hundred bales.
Pakistan ranked third with ten thousand and one hundred bales. For the year 2025-2026 thirteen thousand and two hundred bales were sold. Turkey purchased the entire quantity.
Chairman of Pakistan Ginners Association, Dr Jasu Mal, discussed with Federal Minister of Trade Jam Kamal Khan the alarming decline in ginning companies from 1,200 to 400, causing underutilisation of electricity resources and disruptions in cotton supply chains. Cotton is a livelihood for millions in Pakistan, dependent on its cultivation, harvesting, and processing.
The Minister acknowledged heavy taxes on cotton production, from pesticides to ginning and oil extraction, making competition with other crops challenging. He assured the government is taking immediate action to address this issue, especially considering the $3-4 billion spent annually on cotton imports, which can be saved by revitalizing domestic production.
The Minister proposed a series of seminars and workshops to develop a comprehensive action plan in collaboration with industry stakeholders, including All Pakistan Textile Mills Association (APTMA) and exporters. He encouraged the association to submit funding proposals through the Export Development Fund (EDF) to revitalize the sector and promote exports.
Dr Jasu Mal appreciated the Minister’s support and highlighted the sector’s once-esteemed title of “white gold.” He warned that without intervention, high taxes and electricity costs will continue to deter farmers from cultivating cotton, despite its billion-dollar export potential.
The meeting concluded with a firm resolve to restore Pakistan’s cotton industry to its former glory.
Separately, the Sindh Abadgar Board (SAB) held a meeting in Hyderabad, attended by farmers from various districts, to discuss the impact of severe weather conditions on Kharif crops. The discussion revealed that heat waves and heavy rainfall resulted in a 50% decrease in cotton production compared to last year.
Low seed cotton prices, coupled with production decline, left many farmers unable to invest in post-rain crop management due to financial constraints.
Some farmers who afforded nutrition and bio-stimulants for their crops managed to recover some production, but most struggled.
Paddy harvesting has also begun. While initial sown crops were affected by heat waves, overall paddy production is reported strong. However, farmers suffered significant losses in Kharif vegetables, particularly chilli peppers and onions, exacerbating their financial woes.
The meeting emphasised the need for the government support for farmers to recover from losses, improved irrigation systems and water management, climate-resilient crop varieties and farming practices and enhanced agricultural extension services and training. They urged the government to address these concerns to ensure the sustainability of Pakistan’s agriculture sector.
Another critical issue raised was the declining prices of cotton and paddy seeds. In 2023, the price of cotton seeds was Rs 8,500 per 40 kilograms, while paddy seeds cost Rs 3,500 per 40 kilograms. Despite increases in input costs, prices for both commodities have dropped this year, with cotton seeds now priced around Rs 6,500 and paddy seeds at approximately Rs 2,500 per 40 kilograms.
The farmers expressed deep concern over the price drop, which has fallen below production costs. This concern is reflected in the 20% decrease in fertiliser usage compared to last year- an ominous sign for future agricultural production. Due to these challenges, achieving strong agricultural GDP growth and repeating last year’s record exports may not be possible.
The farmers criticised the government’s lack of support for the agricultural sector, citing climate change’s impact on production and what they see as selective deregulation benefiting hoarders and middlemen at the expense of farmers.
Sajid Mahmood, Head of the Technology Transfer Department at the Central Cotton Research Institute (CCRI), Multan, has stated that the recent cotton varieties developed by the Pakistan Central Cotton Committee (PCCC) demonstrate exceptional production potential.
Notably, one of the prominent varieties from CCRI Sakrand, CRIS-682, has been cultivated on approximately 35-40% of the area under cotton production in Sindh this year and has recently received approval from the Sindh Seed Council as one of three approved varieties. CRIS-682 is currently performing remarkably well throughout Sindh.
In the ongoing cotton season, CRIS-682 has exhibited superior performance across the province, serving as a definitive response to claims that PCCC varieties lack efficacy. This approved variety from CCRI Sakrand is characterised by excellent fibre quality, high heat tolerance, and outstanding production capacity, thus establishing itself as a leading option in Sindh due to its impressive yield potential.
Looking ahead, the breeders at the Central Cotton Research Institute, Multan, are developing another notable variety, Cyto-547, in addition to other varieties.
Currently in its first year of trials under the National Coordinated Varietal Trials (NCVT), Cyto-547 is expected to be available for general cultivation by farmers in 2025, God willing. This variety not only possesses robust production capabilities but is also resistant to sap-sucking pests, particularly whitefly, which poses a significant threat to cotton crops. It is noteworthy that in its inaugural year of NCVT in 2023, Cyto-547 achieved the top position across Punjab, and it is now in its second year of trials.
These advancements represent a significant milestone for Pakistan’s agricultural research system and constitute a critical step toward enhancing cotton production. The success of these varieties is a testament to the relentless dedication of our PCCC scientists and will open new pathways for the advancement of the cotton industry in our country.
Copyright Business Recorder, 2024
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