Cotton Production Declines by Whopping 60% in August

Cotton production has declined by 60 percent in Punjab and Sindh as of August 31, 2024. This has put considerable pressure on Pakistan’s textile sector, which now faces the daunting prospect of importing lint from foreign markets. The Pakistan Cotton Ginners Association (PCGA) reported that only 1.226 million bales reached ginning factories by the end of August, a significant drop from the 3.04 million bales produced in the same period last year. The industry is further taken aback by the discrepancy of over 0.3 million bales between the crop figures released by Punjab’s Crop Reporting Service (CRS) and the PCGA, complicating future procurement strategies. Sindh reported a 61% production decrease, while Punjab experienced a 58% decline. The shortfall is attributed to factors like delayed sowing, a prolonged heatwave, heavy August rains, pest infestations, reduced crop acreage, market manipulation, and a lack of government support for research and development. With the quality and quantity of cotton severely impacted, textile mills have turned to imports. Spinners have started securing deals for 1.6 million bales already and further negotiations are well underway.