INP-WealthPk

Low Cotton Production Sets Alarm Bells Ringing

May 18, 2022

By Raza Khan ISLAMABAD, May 18 (INP-WealthPK): The business community has urged the government to take urgent measures and formulate a comprehensive plan to increase cotton production. Decline in cotton production is directly hitting Pakistan’s exports, employment and income of the people besides increasing the trade deficit, the business community said. Talking to WealthPK, Secretary General of All Pakistan Textile Mills Association (APTMA) Shahid Sattar said Pakistan was losing at least $5 billion directly on account of low production of cotton. “Increase in cotton production will have a direct impact of $1 billion per 1 million bales and a 7 times multiplier impact on the fiscal flows in the economy,” Sattar said. He said according to research, the overall cotton area in Pakistan had declined by 33% from 2.9 million hectares to 1.9 million hectares in the last decade. “Cotton area in Punjab province has decreased by 50% from 2.53 million hectares (2012) to 1.28 million hectares (2022),” the APTMA secretary general said. In Pakistan, cotton yields have fallen by 26% from 880kgs/hectare to 652kgs/ hectare over the last 10 years, he added. “Brazil gets 1721kgs of cotton per hectare, Uzbekistan 994kgs per hectare, China 1,864kgs per hectare, while Pakistan gets only 520kgs per hectare,” Sattar said. “Cotton has lost one million hectares of sowing area in the last decade. If this area reverts to cotton again, the country will produce an extra 5 million bales,’’ said Sattar. He said Pakistan was producing enough cotton in 1992 to meet the local demand; however, due to ignorance and negligence, the country was facing a reduction in cotton production. The APTMA secretary general demanded that the government take steps to increase cotton production. He said the APTMA had already urged the government to announce Rs8,000 per 40kg as the cotton support price. The minimum support price of Rs8,000 per 40kg is based on International New York Future cotton price of Grade-3 of $1.25 per lb (pound), he said. “The government should engage various departments with the Ministry of Agriculture and Ministry of Textile to formulate an urgent plan to increase the area of the cotton crop while using modern techniques,” Sattar suggested. He said incentives to farmers will also increase cotton sowing areas in the country. The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has also suggested the government take measures for increasing cotton production. “The government should declare cotton emergency and take all necessary measures to increase production,’’ the FPCCI said in a statement. The chamber also suggested training for the farmers in quality seeds for plantation and use of modern techniques while sowing cotton crop. The FPCCI expressed concern over low yields of cotton in the country and suggested that the government provide incentives to the farmers to enhance the area of cotton crop.