Cotton production increased by 75%

KARACHI:

Cotton production in Pakistan has increased by 75% in the current season to an impressive 8.35 million bales. This recovery significantly boosted the country’s largest export earner, textiles, and enhanced its impact on overall economic activities.

Favorable weather conditions and the government’s announcement of a higher support price of the commodity at Rs 8,500 per 40 kg for the ongoing season have been instrumental in this unprecedented growth.

According to the Pakistan Ginning Mills Association, production, as reported on Saturday, stands at 4.76 million bales in the same period (July-January) of the 2022-23 financial year.

Analyzing the latest production figures, the biggest boost in commodity production is attributed to Sindh, where the harvest increased by 120% to 4.11 million bales in the current season compared to the previous one. The rest of the production, totaling 4.24 million bales, came from Punjab, up 47% in the first seven months of the season compared to the corresponding period last year. PCGA estimates full-season production to be in the range of 8-9 million bales this year, while Naseem Usman, Chairman, Karachi Cotton Brokers Forum, predicts total commodity production to reach 8.45 million bales by the end of the current season .

Reading Drone technology boosts cotton production

The government’s announcement of a minimum purchase price of Rs 8,500 per 40 kg has led farmers to grow the commodity on more farmland, according to industry officials.

Ahsanul Haq, President of Pakistan Cotton Ginning Forum, noted that despite the stability of cotton prices internationally, local textile mills and spinning mills are facing challenges. The industry is grappling with rising production costs due to rising energy prices, prompting talk of possible protests.

Textile mills expect electricity tariffs to drop from 14 cents to 9 cents, while the government is considering another IMF-led gas price hike.

Published in The Express Tribune, February 4^u2024.

Like Businesses on Facebook, follow @TribuneBiz on Twitter to stay updated and join the conversation.