Pakistan’s per-acre yield of cotton has decreased to only half that of other nations in the area, dramatically reducing the country’s cotton production.
Farmers have shifted to other crops including rice, maize, and sugarcane due to the low profit margins for cotton growing. The ongoing decrease in cotton production has deeply concerned economic officials.
Policymakers and Finance Minister Ishaq Dar noted the declining cotton sowing area at a recent Economic Coordination Committee (ECC) meeting, which raised concerns for the government. Dar, the ECC meeting’s chair, made the observation that Pakistan’s per-acre cotton crop was dwarfed by that of the surrounding nations.
A support pricing system will be developed by the Ministry of National Food Security and Research in cooperation with the Ministry of Industry and Production, it was emphasised.
The ECC observed that the wheat and sugarcane models may be taken into account for the cotton support price.
The secretary of the Commerce Division emphasised the need of adopting international standards and of doing research on the comparative benefits of crops.
According to the Ministry of National Food Security, cotton output, which is the main crop in Pakistan’s agricultural sector, peaked at 14.1 million bales in the 20042005 growing season. Later on, though, the harvest only produced an average of around 12 million bales each year, falling to 7 million in 202021 and roughly 9.45 million in 202122 during the course of the remaining four years.
The standing cotton crop was also severely harmed by the unexpected floods in 2022, which reduced overall production to just 4.76 million bales (based on cotton arrivals until March 3, 2023) as opposed to the objective of 9 million bales.
According to the government, planting areas are likewise getting smaller while cotton yield is declining.