Pakistan cotton production at lowest level in three decades

According to the Pakistan Cotton Ginners Association, cotton production in the country has come down by 34% to 5.5 million bales and this is the lowest production in three decades due to which government policies have attracted the attention of farmers towards corn and rice.

According to the Bureau of Statistics, cotton is an important component of the country's economy and accounts for about one percent of GDP.

Pakistan Cotton Ginners Association (PCGA) Chairman Dr Jassu Mal said in a press conference that cotton production is less as compared to 8.3 million bales last year 5.5 million bales are left.

He said since 2014-15, the area under cotton has decreased by 35% due to which farmers have started cultivating sugarcane instead of cotton due to subsidized prices by the government.

Bad weather and shortage of certified seeds were also the reasons for the decline in cotton production, he added.

According to an analyst, country had the highest production of 1.5 crore bales of cotton in 2014-15, but since then the production of cotton has been declining, the government has been forced to import cotton to meet the needs of the country's textile sector.

Cotton is the lifeblood of Pakistan's textile industry. Textile products account for more than half of the country's exports. Analysts say factories will have to import 7 million to 8 million cotton bales this year to sustain export growth.

According to the Pakistan Bureau of Statistics, in the first half of the current financial year, the import of raw cotton from Pakistan increased by 512% and Rs53.532 million was spent on its import.

In contrast, 880 million worth of raw cotton was exported during the last fiscal year. These imports were 14.67% higher than the previous financial year.

Statistics from the Central Bank of Pakistan show that cotton cultivation has declined by 11.9 per cent to 2.2 million hectares during the current financial year, the lowest area under cultivation since the 1982 financial year. According to the central bank, excessive rains and pest infestations damaged the cotton crop.

According to analysts, the shortage has led to a significant increase in cotton prices in the local market after almost nine years. "The current price of cotton is Rs11,000 per bale (40 kg), which is close to the highest price of Rs14,000 recorded in 2010-11.

According to Ginners, the decline in cotton production has led to the closure of 60 per cent of the country's ginning factories and the loss of thousands of jobs. The bread and butter of about 1.5 million farmers in Pakistan is directly related to cotton cultivation.