Rs5,922 billion lost in a decade

ISLAMABAD: The cotton under cultivation area and production declined significantly, as growers shifted from cotton to sugarcane and maize so its output slashed from 15 million bales to 8 million bales.

In totality, this has caused losses to the tune of $36 billion over the last one decade. It was feared by all experts that the production of cotton would further go down and would be standing in the range of 6.5 to 7 million bales during the current fiscal year.

While production of cotton in India, Brazil, USA and other countries has increased manifold but it was on decline in Pakistan. Because of importing cotton from abroad, the cost of the textile sector increased by 6 percent, so this sector became uncompetitive compared to other countries.

On this occasion, Federal Minister for National Food Security Fakhar Imam said that there was a need to take concrete action against fake seeds and pesticides because without improved quality of input, per acre yield could not be increased. Adviser to PM on Commerce Abdul Razak Dawood said that he opposed the policy of support price because it could not bring efficiency and productivity.

It was the crux of discussions held at a seminar titled “Cotton Production: Challenges and Way Forward in the Modern Age” organised by the Sindh Agro Industries (SAI), FPCCI and the Jang Media Group here on Thursday.

Dr Jassu Mal, Chairman Pakistan Cotton Ginners Association, said that the climate change was impacting cotton production negatively, so there was a need for more research on it. Khalid Kokhar, a grower, lambasted the policies of different governments and stated the growers were forced to think why they should grow cotton. He said that Parliament passed a resolution to fix the support price of cotton but there was no attention from the government side. Minister for Food Security Fakhar Imam tabled a summary before the ECC for fixing support price of cotton but the ECC rejected summaries twice.

Akash Kumar, Director Sindh Agro Industries, said that Pakistan imported lint worth $9 billion, lost lint production worth $8.3 billion, faced losses of above 35 percent of cotton production value chain and losses accumulated due to loss in seed, feed meal. About oil and others in totality, Pakistan faced losses of $36 billion because of reduced production in the last one decade.

Dr Khalid Abdullah, Cotton Commissioner, Ministry of National Food Security and Research said that there was contribution of Rs100 billion, 1,300 ginning factories, 4 million seeds, 450 spinning units and $13 billion textile exports on per annum basis. Now the cotton production, he said, was slashed from 14 million bales to 8 million bales. The area of cotton under cultivation was standing at 3.4 million hectares, which was now reduced to 2.3 million hectares so over one million area of cultivation decreased in the country. He suggested a cluster approach in order to resolve problems in the cotton sector. Mian Anjum Nisar, President FPCCI said that the agriculture sector remained a neglected sector and when he became President FPCCI he asked the government to focus on this sector. He said that the reflection of the neglected sector had started appearing as the wheat crisis was appearing because the government did not take timely decisions.

He raised the issue of fake seeds and pesticides and asked for stern action against this crime. The government, he said, should legislate against those who are involved in such crimes because it causes losses to the productivity of the agriculture sector.

Adviser to PM on Commerce Abdul Razak Dawood said that when PTI came into power, there was issue of de-industrialisation but now the textile sector was unable to meet demands to ensure timely delivery because of capacity constraints. He said that it was perceived that he supported only textile sector but it was not true. He cited examples from Musharraf era and reminded that the growers had demanded permission to export cotton but when he sought viewpoint of APTMA they opposed it on the pretext first the growers should meet their demand then allow them for exports. He did not accept the demand of the APMTA and allowed farmers to export cotton after which the production of cotton touched 14 to 15 million bales.

He said that there was genuine requirement of 200 to 300 units of ginning mills but there were 1300 units because their machinery and technology was installed in 1950s and 60s. On fake seeds and pesticides, he said that it was fault on government side that needs to be rectified.

He said he opposed the support price because it made the products uncompetitive in international market and secondly our textile sector would have to focus on productivity. He said that our cotton is white gold that will be supported at all levels. He said that the rice sector was performing well as its exports increased from $250 million per annum in 2006 to $2.1 billion last fiscal year 2019-20. Now it plans to fetch $5 billion exports of rice, he added.

Syed Fakhar Imam, Federal Minister for Food said that it was good omen that thinking of reviving cotton emerged at all levels but there was need to undertake more in-depth research to ascertain losses caused by climate change and heavy rainfall as it broken record of last 90 years in Sindh while it also caused losses in Southern Punjab. He said that Pakistan would have to focus on manufacturing because we had turned ourselves into trading nation at the moment. He said that the self-reliance based on truth and accountability should be our objectives for all spheres of lives.