The decline in cotton production and the reduction in cultivated area in Pakistan have become pressing issues that require immediate attention. Cotton is a vital crop that serves as the foundation of the country’s textile industry.
However, in recent years, farmers have increasingly shifted their focus from cotton to other crops such as sugarcane, maize, rice, and sesame, leading to a notable decrease in cotton cultivation. This trend poses a significant threat to the agricultural sector and the broader economy, necessitating urgent intervention to avert potential losses.
A fundamental factor contributing to the decline in cotton production is the absence of a timely and effective support price mechanism. When cotton prices are not determined and announced promptly, farmers face financial uncertainty, prompting them to explore alternative crops.
To revitalize cotton cultivation, it is imperative for the government to ensure the timely announcement of support prices, thereby providing farmers with the financial stability necessary to invest in cotton production.
Climate change represents another significant challenge impacting cotton cultivation. The rising temperatures, heat waves, and increased incidence of torrential rainfall in Pakistan have adversely affected cotton and other crops.
Unlike cotton, crops such as sugarcane, maize, and rice are more resilient to these climatic adversities, which leads farmers to prioritize their cultivation. To mitigate the effects of climate change on cotton farmers, it is essential to develop climate-resilient cotton varieties that can withstand extreme weather conditions and minimize pest damage.
Pest infestation is also a major contributor to the decline in cotton production. Pests such as whiteflies and pink bollworms pose serious threats to cotton crops, resulting in significant yield losses. Whiteflies not only damage leaves but also transmit the leaf curl virus, which weakens cotton plants and diminishes production.
Similarly, pink bollworms inflict damage on cotton flowers and bolls, adversely affecting both the quantity and quality of yields. It is estimated that pests lead to the loss of approximately two million bales of cotton each year. Addressing this issue requires the development of modern, genetically resilient cotton varieties and providing farmers with training on the judicious use of pesticides to implement effective pest control measures.
The cotton leaf curl disease, spread by whiteflies, poses an additional challenge, affecting plant growth and resulting in lower yields and compromised quality. The development of virus-resistant seeds is crucial for combating this disease and protecting cotton crops from whitefly damage. Research institutions must focus on producing durable and suitable seeds that can withstand these challenges.
Moreover, inadequate investment in research and development has significantly hampered cotton production. The non-payment of cotton cess and the financial difficulties faced by research institutions have obstructed the development of modern cotton varieties and the adoption of advanced agricultural techniques.
Cotton cess is a critical financial resource that supports research and development in the cotton industry. However, since APTMA (All Pakistan Textile Mills Association) halted cotton cess payments in 2016, research institutions have faced severe financial constraints, leading to a stagnation in research and the development of new varieties.
To restore momentum in cotton production, it is vital for the government and private sector to enhance investments in research institutions and ensure timely payments of cotton cess. This would facilitate access to improved varieties and modern techniques, ultimately stabilizing cotton production and creating new opportunities for farmers.
The issue of market monopolies also contributes significantly to the decline in cotton production. The dominance of major buyers has resulted in the exploitation of farmers. When cotton production increases, APTMA often reduces prices, benefiting generators, mill owners, middlemen, and commission agents while leaving farmers at a financial loss.
This intermediary role undermines farmers’ ability to receive fair compensation for their efforts. To protect farmers from such exploitation, it is essential for the government to implement policies that promote price transparency, encourage competition among buyers, and facilitate direct trade opportunities through digital platforms. These measures would ensure farmers receive equitable compensation, fostering financial independence and contributing positively to the cotton industry and national economy.
Promoting early planting of cotton could serve as an effective strategy for significantly increasing production in Pakistan. If early planting is adopted on 1.5 million acres of the current 6 million acres of cotton during the February-March window, we could potentially achieve approximately 5 million bales at an average yield of 40 maunds per acre. Furthermore, traditional planting on the remaining 3.5 million acres after the wheat harvest could yield about 6.5 million bales at an average of 18 maunds per acre.
This minor adjustment in planting strategy could elevate total production beyond 10 million bales. By implementing slight changes to planting times, substantial increases in cotton production can be realized.
For example, if a farmer possesses 12 acres, allocating 3 acres for early cotton planting could enhance yields while also providing farmers with better pricing opportunities.
This approach enables more efficient crop management and optimizes climatic advantages, leading to increased economic stability and improvement for farmers.
Finally, the unjust application of the General Sales Tax (GST) represents a significant barrier to cotton production. In Pakistan, an 18% GST on imported cotton has been waived, while local production remains subject to the same tax. This disparity creates an uneven playing field for domestic cotton growers, negatively impacting their financial viability and exacerbating the decline in production.
Establishing equilibrium in GST implementation is crucial for promoting local cotton production and ensuring stability in the cotton industry.
When the GST rate on local production exceeds that of imported cotton, it creates an inequitable financial situation for local farmers, diminishing their motivation and leading to further declines in production. Therefore, if the government maintains balanced GST rates and implements measures to support local production, it will not only stabilize farmers’ economies but also contribute to the growth and self-sufficiency of the cotton industry.
To effectively address these multifaceted issues, a collaborative approach involving the government, research institutions, and the private sector is essential. By implementing practical measures aimed at increasing cotton production, enhancing farmers’ prosperity, and improving the overall economy, stakeholders can work together to revitalize Pakistan’s cotton sector and secure its future.
Copyright Business Recorder, 2024