33% Decline In Cotton Produce, Reforms Suggested
Faizan Hashmi Published December 18, 2024 | 06:44 PM
Pakistan’s cotton produce witnessed a sharp decline, with figures from the Pakistan Cotton Ginners Association (PCGA) revealing a 33.11% drop in output as of December 15, 2024.A total product stands at 5,367,334 bales compared to 8,023,707 bales in 2023
MULTAN, (UrduPoint / Pakistan Point News - 18th Dec, 2024) Pakistan’s cotton produce witnessed a sharp decline, with figures from the Pakistan Cotton Ginners Association (PCGA) revealing a 33.11% drop in output as of December 15, 2024.A total product stands at 5,367,334 bales compared to 8,023,707 bales in 2023.
Punjab, the primary cotton-produce region, experienced a 34.44% decrease, with production falling from 3,956,880 bales in 2023 to 2,593,949 bales in 2024. Sindh saw a 31.80% reduction, with output decreasing from 4,066,827 bales to 2,773,385 bales. Meanwhile, Baluchistan contributed 156,400 bales.
The decline was attributed to climate change, water shortages, and a lack of investment in research and development. Sajid Mahmood, an expert on cotton, emphasized the need for immediate action to mitigate the crisis. "Reviving the cotton sector requires a national effort, with a focus on research and development," he said.
Sajid Mahmood recommended significant reforms to the Pakistan Central Cotton Committee (PCCC), including resolving the eight-year-long cotton dispute between the textile sector and PCCC.
He noted that a robust and modernized PCCC could unify efforts to develop pest-resistant, high-yield seeds and climate-smart cotton varieties.
He further suggested policy measures to encourage domestic production, such as abolishing the 18% sales tax on locally produced cotton and imposing it on imported cotton. “These steps would reduce dependency on imports and incentivise local farmers,†Mahmood added.
With cotton imports expected to cost $2 billion this year, Mahmood stressed the financial burden on the national exchequer. He highlighted the potential economic benefits of increased local production, estimating that an additional one million bales could generate one million jobs and contribute $1 billion to export revenues.
Policymakers should also capitalize on the State Bank of Pakistan’s recent decision to reduce the policy interest rate from 15% to 13%, which Mahmood believes could positively impact the agricultural sector.
