KARACHI:Pakistan’s cotton production has declined by 34% this year as compared to the crop yield last season, according to the data provided by the Pakistan Cotton Ginners Association (PCGA).
The data shows that the country produced 4,912,069 bales of cotton this year, the lowest in around four decades, as compared to 7,441,833 bales in the 2021-22 season, reflecting a year-on-year decline of 2,528,764 bales or 34%.
The textile industry, which relies heavily on cotton, is likely to face challenges in meeting its annual requirement of 15 million bales due to the shortfall. The current data shows that the industry will have to import around 10 million bales to fulfill its needs.
Furthermore, mill consumption in the year 2022-23 has also been reported at 8.8 million bales, the lowest in over 20 years, mainly due to severe import financing issues. Reports from the market suggest that textile mills have so far signed import agreements for 5.5 million bales, whereas they have purchased 4,605,449 bales from the local market. Last year, the mills had bought 7,332,000 bales from the domestic market.
According to the ginners, they are still holding 301,720 bales in their stocks against last year’s inventory of 93,833 bales.
Market experts believe that the decline in cotton production would have far-reaching consequences for the Pakistani economy, as the textile industry is a major contributor to the country’s exports and employment.
