Cotton production has experienced a decline of more than 33 percent.
Lahore: The arrivals of phutti, or raw cotton, experienced a notable decline of more than 33 percent as of December 31, 2024, in comparison to the corresponding period of the previous year, according to data published by the Pakistan Cotton Ginners Association (PCGA) on Friday.
Total phutti arrivals for the current season have reached 5.452 million bales, a decrease from the 8.171 million bales recorded on December 31, 2023, indicating an overall reduction of 33.27 percent or 2.719 million bales. When comparing fortnightly data, phutti arrivals showed a slight increase of 2 percent from the 5.367 million bales noted on December 15, 2024.
Cotton production has experienced a notable decline in both Punjab and Sindh. In Punjab, phutti arrivals totaled 2.659 million bales, down from 4.079 million bales, while Sindh reported 2.793 million bales compared to 4.092 million bales for the same timeframe last season. This represents a decrease of 35 percent in Punjab and 32 percent in Sindh. However, on a fortnightly basis, cotton arrivals in Punjab increased by 3 percent from 2.594 million bales, and Sindh saw a 1 percent rise from 2.773 million bales recorded on December 15. The reduction in phutti arrivals poses a significant concern for the national economy, the textile industry, and the financial stability of farmers, as the country will require over $2 billion in cotton imports to satisfy the demands of the domestic textile sector.
Sajid Mahmood, Head of Technology Transfer at the Central Cotton Research Institute, attributes the decline in crop yields to substandard seed varieties and adverse weather conditions. He states, “These inferior varieties not only impede production but also increase the likelihood of pest and disease outbreaks,” advocating for rigorous reforms in the seed registration process, which currently involves around 800 companies. He recommends implementing mandatory practical testing and validation of seeds from each company, along with strict penalties for those providing substandard seeds. Cotton Ginners Forum chairman Ihsanul Haq expressed his disappointment regarding the textile mills’ neglect of purchasing cotton and yarn from the domestic market, attributing this trend to the 18% tax levied on local products, while imports remain exempt from taxation.
He reported that by December 31, 2023, the textile industry had acquired 7.3 million bales, and exporters had obtained 0.292 million bales, in contrast to the figures of 4.8 million bales and 0.046 million bales recorded on December 31, 2024. In a related development, Punjab is preparing for extensive early crop sowing in the upcoming season. A meeting chaired by Agriculture Secretary Iftikhar Ali on Friday highlighted that early sowing leads to increased per-acre yields, and therefore, efforts will be made to maximize the area dedicated to cotton cultivation in February and March. The meeting sought input from stakeholders to finalize the crop plan and committed to permitting only the planting of approved varieties. Additionally, lands that become available after harvesting oilseed crops will be utilized for early cotton planting.
Follow on Facebook for insights on business, finance and tech from Pakistan and across the world.
umer
