KARACHI:
Pakistan’s cotton production rose by an impressive 83% in the 2023-24 season to a total of 6.79 million bales, providing relief to the country’s foreign exchange reserves, which are under significant pressure due to the need for cotton imports. However, despite the increase in cotton production, its market price has fallen to Rs 7,000 per 40 kg, significantly lower than the government’s announced support price of Rs 8,500 per 40 kg. This price difference discourages farmers from investing further in cotton cultivation as the government has yet to honor its promise to buy cotton to stabilize market prices.
The recent increase in natural gas prices, up to 193%, has added to the challenges facing textile manufacturers and exporters, making the country less competitive among regional textile exporters and jeopardizing textile exports.
Pakistan Ginners Forum President Ahsanul Haq pointed out that favorable weather conditions, unlike last year when excessive rain and floods caused low cotton production, have allowed for healthy growth of cotton flowers in the current production season, the which started on July 1st. 2023. He estimated that cumulative production could reach around 9 million to 9.5 million balls in the current season, a significant improvement from the less than 5 million balls produced last season. However, this production level still falls short of the government’s target of 11.5 million bales for the year.
Reading Cotton lab equipment out of order
Haq urged the government to activate the state-owned Trading Corporation of Pakistan to start buying cotton from farmers and ginners immediately to stabilize the market price at or near the support price of Rs 8,500 per 40 kg. He pointed out that the caretaker government had initially announced its intention to buy cotton from the market, but later, the purchase process was linked to approval from the Economic Coordination Committee (ECC) of the Cabinet, which is yet to take place. Ginners said the increase in cotton production would save the country about $1 billion in imports.
Published in The Express Tribune, November 4u2023.
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