Pakistan’s cotton industry continues to face a deepening crisis, with total production down by 48% compared to the same period last year, according to the latest data from the Pakistan Cotton Ginning Association (PCGA). As of mid-October, ginning mills had received 3.1 million bales, down from about 6 million bales by this time in 2023, underscoring the severe challenges the sector faces.
Despite the sharp overall decline, the first two weeks of October 2024 saw a surprising 9% increase in cotton supplies to ginning mills, with 1.06 million bales delivered compared to 0.97 million bales in the same period last year. This short-term increase led to the reactivation of an additional 184 ginning units, bringing the total number of operating plants to 536. However, this positive momentum is not enough to reverse the sharp downward trend in annual production.
At the regional level, the crisis is severe. Punjab recorded a 53% decline in cotton production, while Sindh witnessed a 45% decline compared to last year. Textile factories, which need between 15 and 16 million bales annually to meet local and international demand, were forced to increase imports, as mills expected the need to bring in 6 million bales from abroad.
The cotton industry, which was already suffering from declining profitability, is facing increasing preference for competing crops such as sugarcane and corn. Farmers struggle without a support price or subsidies, making them vulnerable to market manipulation by middlemen. These economic challenges are further exacerbated by climate-related impacts, such as extreme weather conditions and pests, and insufficient investment in research to address these issues.
Efforts are currently underway to revive cotton production for next season. Dr. Jasu Mal Limani, President of PCGA, is leading talks with stakeholders to formulate strategies for the 2025 cotton crop. However, the long-term outlook remains uncertain, as Pakistan’s cotton industry faces increasing hurdles, both in terms of productivity and profitability.