The Fall of Pakistan's Cotton Sector

The decline in cotton land area, per hectare yield and irrational government policies have taken a heavy toll on cotton production. According to a report by the Pakistan Central Cotton Committee (PCCC), the target for cotton production was lost by 15 percent in every year. The following table shows the cotton area and production objectives and the success.

Over the past five years, cotton production has declined from 13.86 million barrels to 11.98 million barrels, proving a 14pc decline that has caused a loss of $ 535 billion (about 2 percent of total GDP) to the economy.

In addition, as the cotton sowing season continues, only 48pc crop sown in Sindh compared to the target of 0.62 million hectares and Punjab has acquired 95pc per hectare (2.31 million hectares) as of June. Total land planting stands at 2.494 million hectares, confirming the decline of 8.8pc over the past five years.

Apparently the main reason for the decline in cotton yields is the low yield per hectare (some decreased by 6.2pc over the past five years), which has left Pakistan the only importer of cotton to meet domestic needs. Under these conditions where cotton imports are the last resort to meet the minimum demand, the 11pc cotton operation will exacerbate the situation and leave Pakistan unpaid globally. In line with traditional practices the government hunts for the textile industry through tax-free barriers (NTB) .According to the NTB, cotton importers are not allowed to import cotton by exporting more than one permit per inclusion fee. It will also directly affect the export of fabric and textiles, 75pc of which is cotton.

In addition to the low yields, many other cooperative factors have also contributed to the production of cotton. For example the better return of sugarcane due to the special policy incentives provided by the sugar industry by the government, has ultimately frustrated cotton growers. So they moved from cotton to sugarcane which resulted in a 15pc increase in acreage of sugarcane and a significant reduction in acreage of cotton.

In addition to technical and administrative challenges, climate change and unequal rainfall also add to the fire. Farmers also suspect widespread use of genetically modified Bt. Seeds, mafia seeds and water shortages in low cotton production. Farmers say the Mafia mafia poses a serious threat to the cotton crop by selling counterfeit Bt. seeds leading to the loss of 2-3 million cotton barrels annually. Low levels of toxicity (0.2-0.6 per gram) in those fake grains and outdated Bt. technology has lost its effectiveness in fighting serious cotton diseases such as rabies and other pests.

Water shortages have also played a major role in reducing cotton production. Currently, farmers are worried that due to severe water shortages cotton production could decline by 35-40 percent more than last year. Along with the water and energy crisis, huge increases in water, gas, fuel and electricity prices have also affected the yield per hectare.

In addition to declining production, the quality of cotton also deteriorates. Deception Bt. seeds of low toxin levels and pollution contribute to the production and quality of cotton. Contrary to the international standard of 2.5g / barley, Pakistan produces 18g / bale of the most polluted cotton causing a financial loss of about $ 1.4 billion annually.

Aside from these problems, Low Investment in Cotton Research is also a matter of great concern. Pakistan's investment in Cotton R&D is lower than in other countries. It is backed by PCCC cesses collected by PCCC which has already dropped by 53pc more than last year causing further decline in R&D cotton. This decline in R&D in cotton should be reviewed to ensure the survival of the cotton industry in Pakistan.

To protect the cotton industry from further policy collapse is necessary. Cost of cotton implants should also be reduced to a new version of Bt. technical seeds should be provided to farmers. In addition to new and innovative technologies, high quality seeds should also be provided to farmers. Efforts should also be made to assess the feasibility of producing cotton in newly cultivated areas e.g. in Baluchistan and KPK. In addition, an appropriate land reform program can be introduced to promote the crops that are most important for economic growth.

In the meantime, protecting the textile industry, the foundation of our economy, all jobs and barriers that do not cost cotton should be removed until such time as cotton production can meet demand.

To improve quality, awareness campaigns and awareness programs should be implemented to train farmers in selecting, storing and supplying cotton properly. Ginning should be modernized and developed to meet overseas standards.

If no government pays attention to the imposition of 11pc duty on cotton it will be the last nail in the coffin of the Pakistani textile sector and any hope for continued growth in exports.