KARACHI: Cotton arrivals hit a three-decade low level of 5.6 million bales due to farmers switching to other crops with the sliver fiber production sharply down 34 percent year-on-year till January 31, industry officials said on Wednesday.
Cotton arrivals in ginneries were recorded at 8.48 million bales till the same period last year, according to the report released by Pakistan Cotton Ginners Association (PCGA).
“It is a major reduction. A sharp decline,” Mehmood Nawaz Shah, senior vice president of Sindh Abadgar Boar told The News. Of these arrivals, 70,200 bales were exported, up 19.6 percent against 58,666 bales of last year. Production has decreased to the lowest level in 30 years due to substandard seed, substandard pesticides that led farmers to move to other crops, according to people with the knowledge.
By this time, five million bales have been sold to mills as against last year’s 7.63 million bales. Currently, 454,764 bales are in stocks with ginners, down 43 percent compared to 796,375 million bales. Shah said cotton crop reached to 14.8 million bales in 2008, when Bt cotton, which is pest-resistant, was sown.
“Climate change is also an issue. This production suffered because of rain in August and September. Punjab’s crop suffered because of extensive heat,” he said.
Shah said the government allowed seeds with 50 percent germination.
“If no action is taken regarding quality seed, cotton production will further decline next season,” he said. “Price of seed cotton is standing at the same level for 4-5 years, which is actually negative if inflation and cost of inputs is added.”
Naseem Usman, chairman of Karachi Cotton Brokers Association said sowing of new crop is about to begin in lower Sindh but no measures have been taken by the government to provide quality seed. “There are chances of sowing the substandard seed, which will again affect the production,” he said. The country is losing its foreign exchange reserves over duty free import of cotton. With a decline in the cotton production, growers would suffer and ginners and other people would lose their livelihood.
“Both the federal and provincial governments are not giving any attention towards this crucial issue,” he said.
Shah said India allowed use of genetically-modified cotton seeds, while Pakistan is not allowing it. Since it is not eatable, such seeds should be allowed in cotton or other seeds should be imported as the country failed to introduce any productive cotton seed in last 12 to 14 years.
The ginners report said fortnightly flows (January 16-31) were down 47 percent at 78,528 bales as against flows of 149,078 bales during the same period last year.
Punjab recorded arrivals of 3.43 million bales, down 31.46 percent. Arrivals from Sindh were down 38.5 percent to 2.13 million bales. Eighty seven ginning factories were in operation in Punjab by January 31, compared to 119 factories in operation during the same period last year. There were only three ginning factories in operation in Sindh against 15 factories during the corresponding period last year.