INP-WealthPk

Cotton Production Expected to Reach 9.4m Bales This Year

April 14, 2022

By Muhammad Asad Tahir Bhawana ISLAMABAD, April 14 (INP-WealthPK): Cotton production is projected to reach 9.4 million bales this year, which will be over 33% higher than the last year, according to the data for the first quarter of the fiscal year 2021-22 released by the State Bank of Pakistan. Moreover, the province-wide data shows that cotton yield in Sindh grew by 54% compared to a decline of 14.6% recorded last year. In Punjab, the yield increased by 30.3% compared to a decline of 2.7% last year. Several factors contributed to the significant increase in yields, including favourable weather conditions, improved crop management practices, and good cotton prices in the market. The weather condition during Kharif 2022 remained favourable for cotton, especially because of the timely rainfall. Sindh’s rainfall was 89% below the normal level in August 2021, turning the environment beneficial for the cotton crops. Moreover, the current projection of cotton production is also supported by some measures taken by the government. To enhance production and bring stability to the local market, the Economic Coordination Committee approved a Rs 5,000/40kg intervention price for the cotton crop for the year 2022. Under any adverse scenario, if prices fall below this number, the state-run Trading Corporation Pakistan would buy cotton from farmers at the support price. Further, the provincial governments are also guiding farmers to avoid non-optimal pesticides to get better crop output. Cotton crop is the key ingredient of Pakistan's textile industry and its exports. According to the Pakistan Bureau of Statistics (PBS) data, in the first eight months of fiscal year 2021-22, Pakistan exported $815.375 million worth of cotton yarn compared to $606.690 million during the same period last year. Similarly, Pakistan exported $1,584.063 million worth of cotton cloth during this period compared to $1,235.301 million last year. It is relevant to mention here that Pakistan's overall area under cotton cultivation is declining. From 2013 to 2022, cotton cultivation decreased to 2.6 million hectares from an average of 3 million hectares between 2013 to 2012. The area under cotton cultivation decreased to 1.9 million hectares in 2022 from 2.1 million hectares in 2021. To enhance the production of cotton and stop a large-scale switch to other crops, the government should take measures to help reduce the effects of climate change on the crop. Fluctuating weather conditions such as unexpected rainfall hurt the yields. This phenomenon could best be tackled through the introduction of modern technology. The government’s cotton pricing policy should be attractive enough to motivate farmers to increase their yields.