LAHORE: The textile industry in Pakistan is facing a severe crisis due to unfavourable weather conditions, decreased cotton cultivation, and low demand in local and international markets.
According to Naseem Usman, Chairman of the Karachi Cotton Brokers Forum (KCBF), the country’s cotton production target will not be met this year. The crisis has resulted in around 30% of textile mills being closed, with many operating partially.
To address the shortage, large textile mill groups are increasingly interested in importing cotton from foreign countries, where prices are suitable, quality is better, and payment terms are convenient.
While, talking to Daily Business Recorder Naseem Usman said that agreements of import of approximately 1.5 million bales of cotton have been signed so far.
The annual consumption of spinning mills is expected to be around 12.5 million bales, whereas the registered and unregistered cotton production in the country is expected to be around 8.5 million bales this year. In this way to meet the cotton requirements of the country’s mills, approximately 3.5 million bales of cotton will be imported from foreign countries.
According to Naseem Usman the crisis in the textile sector is expected to continue until local cotton production improves and demand in local and international markets increases.
Meanwhile Dr. Yusuf Zafar, Vice President of the Pakistan Central Cotton Committee (PCCC), has expressed serious concerns about the cotton statistics for this season. He identified insufficient research funding, lack of support prices for cotton, and artificial suppression of market prices as the primary causes of this decline, leading to substantial losses for farmers and a sharp reduction in cotton output.
Dr. Yusuf Zafar emphasized that the decline in cotton production is a direct result of neglecting research and development, offering unfair prices to farmers, and monopolistic practices by middlemen. He warned that if these issues are not addressed urgently, farmers may abandon cotton cultivation altogether.
To boost cotton production, Dr. Yusuf Zafar recommended reducing production costs for farmers and making cotton cultivation more profitable compared to other competing crops. He also noted that this season’s cotton production may decline further due to a smaller cultivation area, prolonged heatwaves, unexpected rains, and severe whitefly infestations.
Pakistan’s cotton production is expected to fall to 6-7 million bales (each weighing 170 kg) this season, far below the textile industry’s demand of 16 million bales. This shortfall will necessitate the import of approximately 5-6 million bales.
The cotton crop is under threat from climate change, pest infestations, and diseases. Dr Yusuf Zafar pointed out that insufficient funding for cotton research has hindered efforts to develop resilient cotton varieties and increase yields. He concluded by emphasizing that Pakistan can revive its cotton industry by ensuring fair prices for farmers and prioritizing research and development.
Copyright Business Recorder, 2024
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