THE report that domestic cotton production has declined to a four-

decade low of 4.9m bales this year has added to the deepening
economic gloom in the country. Ginning data shows that the cotton
harvest declined by a hefty 34pc this year from 7.44m bales the
previous year, mainly because of the catastrophic summer floods in
Sindh and southern Punjab where this industrial crop is mostly
grown. Sindh has suffered a 46pc loss in cotton output, with
Punjab posting a 32pc decline, forcing the textile industry to
import significantly large quantities. Though most of the crop
losses this season were caused by the floods, Pakistan’s cotton
economy has been facing numerous challenges due to consistently
falling production over the last couple of decades, after touching a
high of 11.1m bales in 2004-05. The most recent production spike of
10.6m bales was seen almost 10 years ago in 2014. Meanwhile, in
comparison, global production elsewhere in the world, especially
in India, has been increasing rapidly to record levels.

There are several factors responsible for the poor cotton harvest, year after
year, ranging from pests and disease, erratic weather patterns and water
shortages to poor seed quality, lower per acre yield and a large reduction in
the area under cultivation because of government policies encouraging
sugarcane and other major crops in traditional cotton-sowing regions. With
average annual production dropping to almost half the actual requirement of
the textile industry, textile and clothing exports have suffered a great deal in
the last one decade. Additionally, cotton imports, a major driver of the
economy, are adding to our balance-of-payments woes. Textile exports during
the first eight months of the present fiscal year plunged by almost a third
because of slowing global demand as well as shortages of the local fibre. With
the industry having invested billions of dollars in technology replacement by
spinners, its future competitiveness depends largely on the increased
availability of domestic cotton.

Published in Dawn, April 5th, 2023