The Cotton industrysector in Pakistan, a vital contributor to the country’s economy and textile exports, has faced a significant setback this year. By December 31, 2024, cotton arrivals recorded a sharp decline of 33% year-on-year (YoY), according to the Pakistan Cotton Ginners Association (PCGA). This alarming trend raises concerns about the future of the textile industry and its global competitiveness. In this post, we’ll explore the reasons behind this drop, its impact, and potential solutions for recovery.
Cotton Arrivals Decline – An Alarming Trend
According to PCGA’s latest report, total cotton arrivals this year stand at 5.452 million bales, a drastic reduction from 8.171 million bales during the same period last year. The breakdown of arrivals is as follows:
Sindh:
2.793 million bales (-32% YoY)
Punjab:
2.659 million bales (-35% YoY)
Reasons Behind the Decline
Several factors contributed to this significant drop in cotton arrivals:
- Poor Farmer Economics:
Farmers have struggled with low profitability due to high input costs and low cotton prices. Many opted to shift towards alternative crops with better returns. - Delayed Planting:
The late start of the cotton planting season led to reduced yields and poor-quality produce, further aggravating the problem.
Impact on the Textile Industry
With fewer cotton bales available, Pakistan’s textile sector faces higher production costs and increased dependence on imported cotton, affecting its global market position.
Possible Solutions and Way Forward
- Government Support: Subsidies and incentives for cotton farmers could help revive the sector.
- Improved Crop Management: Training programs and the introduction of pest-resistant varieties can boost yields.
- Timely Planting: Encouraging timely planting with better irrigation facilities may mitigate future losses.
