LAHORE: The latest figures released by the Pakistan Cotton Ginners Association (PCGA) reveal a sharp decline in cotton production, with total output as of December 15, 2024, recorded at 5,367,334 bales. This represents a staggering 33.11 percent drop compared to the 8,023,707 bales produced in 2023, a significant blow to Pakistan’s already struggling cotton sector.
The situation in Punjab, the country’s primary cotton-growing region, is particularly concerning. Cotton production in Punjab fell from 3,956,880 bales in 2023 to 2,593,949 bales in 2024, marking a 34.44 percent decline. In Sindh, production declined from 4,066,827 bales to 2,773,385 bales, a 31.80 percent reduction.
While slightly less severe than Punjab, the figures highlight the challenges facing the province’s agricultural sector. In Balochistan, production reached 156,400 bales.
As of Nov 30th: Cotton arrivals stand at 5.19m bales: PCGA
Sajid Mahmood, Head, Transfer of Technology Department, Central Cotton Research Institute, Multan, said those alarming statistics underscore the challenges threatening Pakistan’s agricultural sector, including climate change, water shortages, and insufficient funding for research and development.
“Addressing these challenges through immediate and comprehensive measures is crucial to stabilizing cotton production and ensuring the sector’s sustainability.
The persistent decline in cotton production has far-reaching implications for Pakistan’s economy. The growing reliance on imported cotton to meet the demands of the textile industry has become a major financial burden. It is estimated that approximately $2 billion will be required to import cotton this year alone, further straining the national exchequer.“
In response, Federal Minister for National Food Security and Research Rana Tanveer Hussain has expressed concern over the situation, emphasising the urgent need for practical measures to enhance cotton production.
The minister has solicited concrete recommendations from stakeholders and directed the swift resolution of the eight-year-long dispute over the cotton cess between the textile industry and the Pakistan Central Cotton Committee (PCCC). He has also sought proposals to restructure PCCC and modernise its approach to research and development. Reviving the cotton sector demands a concerted national effort, particularly in research and development. A strong and sustainable PCCC is essential to spearhead these initiatives.
Chairman APTMA Kamran Arshad has pledged to resume payment of the cotton cess from January 2025, a positive development that signals improved collaboration between the public and private sectors.
Additionally, the Federal Minister has urged PCCC and APTMA to settle outstanding cess dues promptly to ensure undivided focus on research and development. Key stakeholders, including Cotton Commissioner Dr Haroon, PCCC Vice President Dr Yusuf Zafar, and APTMA Chairman Kamran Arshad, are actively working to address these issues.
A comprehensive strategy is imperative to increase cotton production in 2025. Achieving this would not only stabilise the cotton sector but also deliver broader economic benefits. For instance, an additional one million bales of cotton would generate approximately one million new jobs and contribute $1 billion to Pakistan’s export revenues. It would also provide affordable raw materials for the textile industry, driving industrial growth and improving rural livelihoods.
Investments in research and development, particularly in seed technology, are critical to achieving these goals. High-yield, pest-resistant cotton seeds—especially those resistant to whiteflies and pink bollworms—must be developed and distributed. Climate-smart cotton varieties are also essential to mitigating the effects of environmental challenges and ensuring sustainable production.
A revitalized PCCC, functioning as a robust apex body, would create a unified platform for collaboration among provincial governments, private seed companies, and research institutions, including those working under the Atomic Energy Commission. Such a coordinated approach would significantly boost cotton production, enhance farmer incomes, and reduce the country’s reliance on costly imports.
Policymakers must also prioritize removing the 18 percent sales tax on domestically produced cotton while imposing it on imported cotton to incentivize local production. Furthermore, the State Bank of Pakistan’s recent decision to reduce the policy interest rate from 15 percent to 13 percent is a welcome step. This reduction in the markup rate is expected to positively impact the national economy, including the cotton sector.
It is imperative for all stakeholders to work collectively and take immediate, transformative steps to revitalize Pakistan’s cotton industry, ensuring its long-term viability and contribution to national economic growth.
Cotton analyst Naseem Usman while commenting on the report said that estimated cotton production for the current season is expected to fall between 56 to 57 lac bales, excluding unregistered cotton. Meanwhile, imports are anticipated to reach between 50 to 55 lac bales, with import agreements already signed for 36 lac bales.
Copyright Business Recorder, 2024