Cotton production lags, threatening textile sector in Pakistan

MULTAN: Cotton is Pakistan’s most crucial industrial crop, key to the national economy and a source of raw materials for lint to the textile industry, generating a significant chunk of the country’s total export revenues. However, the cash crop production indicators show a considerable shortfall in production.

Fresh cotton arrival shows a shortfall in production compared with the arrival of last year’s during the same corresponding period, while two Punjab districts show zero arrival.Pakistan Cotton Ginners Association (PCGA) has updated Phuthi’s arrival until December 15, showing a shortfall of 33.15pc compared to last year’s arrival during the same corresponding period. The PCGA statistics highlight Phuthi arrival data collected from across the country ginning factories, showing the arrival of 5,367,334 bales till December 15, while the Phuthi had arrived at ginning factories to 8,023,707 bales last year during the same corresponding period, leaving a shortfall of 26,56,373 bales this year. The exporters and traders could purchase 46,300 bales leaving a total stock of 614,320 bales. The ginning factories pressed 52,246,202 bales.

The cash crop has vanished completely from three Punjab districts including Pakpattan, Okara and Sargodha as not a single bale of Phuthi could reach ginning factories during the period. The districts facing a serious shortfall in production are Bhakkar 59.45pc, Layyah 54.67pc, Rajanpur 48.96pc, Faisalabad 48.58pc, Jhang 47.19pc, Mianwali 45.9pc, Toba Tek Singh 43.93pc, Rahim Yar Khan 38.33pc. The rest of Bahawalnagar, Bahawalpur and other districts are facing a shortfall between 19.76pc to 23.54pc.

Cotton growers, Ginners and exporters observed that a cotton shortfall has had several impacts, including rural indebtedness as the crop is a primary source of income for farmers in the country, especially in Punjab and Sindh. When cotton production is low, farmers may struggle to repay loans and credit, which can lead to a cycle of debt. Cotton is a vital raw material for the textile industry, which generates a large portion of the country’s export revenue. When cotton production is low, the textile industry may need to import lint from other countries, which can strain the country’s foreign exchange reserves.

The shortfall in cotton production also brings socioeconomic consequences.Yarn importers say the current scenario is alarming. If the shortfall remains, it would pave the way for the import of yarn for the textile industry.