Saturday, December 2, 2023

Cotton production in Pakistan falls 34% in FY21

Cotton production in Pakistan fell 34% to 5.57 million bales (from 155 kg per bale) in the current fiscal year 2020-21 compared to the same period last year. This production was in line with the annual production estimated for a minimum of four decades in the current year.

The government’s continued neglect of the large commercial crop for several years and climate change strongly affected the domestic economy. So, This led the textile sector (yarn manufacturers) to import cotton worth around the US $ 2 billion this year.

Cotton Production is expected to fall to a historic low during the year. However, demand for the products increases 13%, with the textile sector operating at full capacity after several years. Textiles attract 60% of Pakistan’s total annual export earnings.

The prospects for huge cotton production were minimal since the beginning (Kharif / summer season FY21), given that the area dedicated to culture, recorded on 2.2 million hectares (a decrease in 39 years), is the smallest since FY82, ”The State Bank of Pakistan (SBP) said.

Farmers sowed cotton seeds on 3.2 million hectares in fiscal 2005, according to the bank. But country produced 13.68 million bales (of 155 kg per bale) in fiscal 2005.

The Pakistan Cotton Ginners Association reported on Wednesday that cotton production was at 5.57 million bales in the current fiscal year through January 31, 2021, compared with 8.48 million bales in the same period last year.

USAD About Cotton Production:

Cotton production is now expected at 4.7 million bales of 480 pounds each (or 6.5 million bales of 155 kg per bale), down 24% during the marketing year (August-July) 2020 -21 compared to last year’s production level. This level of production corresponds to the production of the 1984-85 marketing year, which Pakistan achieved 35 years ago with ancient production technology, ”said the US Department of Agriculture’s (USAD) global agricultural network in a report released in December 2020.

The central bank, however, estimated cotton production at the low of just three years, at 8.44 million 170 kg bales for each bale (or 9.2 million 155 kg bales per bale) in FY21.

(CCAC) evaluated cotton production:

“On October 2, 2020, the Cotton Crop Assessment Committee (CCAC) evaluated cotton production at 8.6 million bales of 170 kg (6.7 million bales of 480 lb).”

But there is a big industry consensus that the final production estimate will be much lower.

In its report released on November 15, the PCGA showed arrivals of 4.03 million bales of 155 kg (equivalent to 2.9 million bales of 480 lb), down 41% over the same period last year.

Despite lower cotton production, Pakistan’s textile sector is back at full capacity and appears to be on track to achieve higher exports in the long run,” it said.

The central bank said that while heavy rains played an excessive role in reducing cotton productivity during Kharif AF21. As a result, productivity has roughed for the past decade as a whole.

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