Cotton production plummets 60%, textile sector on high alert

A severe decline in cotton production has sent shockwaves through Pakistan’s textile sector. By August 31, cotton output in Punjab and Sindh had plunged by 60%, forcing the industry to rely heavily on imports.

Confusion reigns as reports from Punjab’s Crop Reporting Service (CRS) and the Pakistan Cotton Ginners Association (PCGA) reveal stark differences in crop figures. The PCGA data shows that only 1.226 million bales reached ginning factories this year, a steep drop from last year’s 3.04 million bales.

Several factors contribute to this drastic reduction. Issues include reduced early sowing, a severe heatwave, heavy rains in August, pest attacks, and shrinking crop acreage. Additionally, the lack of a government-announced intervention price and insufficient support for research and development has worsened the situation.

The PCGA reports a 61% drop in cotton production in Sindh, with only 0.773 million bales produced compared to 1.972 million last year. Punjab saw a 58% decline, producing 0.453 million bales versus 1.068 million last year. However, CRS data suggests a smaller decrease in Punjab, adding to the confusion.

The drop in local cotton production is forcing textile mills to turn to imports, costing valuable foreign exchange. Karachi Cotton Brokers Forum reports that Pakistani spinners have already signed import deals for 1.6 million bales, with more negotiations underway.

Experts, including Sajid Mahmood from the Central Cotton Research Institute, stress the need for increased funding in research and development to develop resilient cotton varieties. The lack of support for the Pakistan Central Cotton Committee has hindered efforts to address the declining output.

As the textile sector grapples with this crisis, industry stakeholders hope for immediate interventions to stabilize the situation and secure the future of cotton production in Pakistan.