According to the most recent fortnightly data made available by the PCGA ( Pakistan Cotton Ginner’s Association), the country’s cotton production declined by over 34% year over year (YoY)
As of March 1, 2023, Pakistan received 4.875 million bales of cotton overall, down from 7.44 million bales during the same period in the previous year. This is a decrease of 34%.
The PCGA figures show that both the cotton-producing provinces of Punjab and Sindh had a significant fall in cotton arrivals.
The number of bales of cotton arriving in Punjab as of March 1 was 2.99 million, down from 3.93 million at the same time the previous year, a fall of 0.93 million bales (23.7 % YoY). In comparison to 2.89 million on February 1, cotton arrivals increased by 3.6 percent on a monthly basis.
In a similar vein, cotton arrivals in Sindh decreased dramatically by 1.63 million bales (46.5%) as of March 1 from 3.51 million bales reported during the same period the previous year to 1.88 million bales as of that date.
Due to last year’s severe floods and the government’s decision to remove tax aid from the agriculture business in order to court the International Monetary Fund, Pakistan’s cotton production is anticipated to decrease even lower overall, particularly in Sindh and Balochistan (IMF). The newly enacted IMF tariffs will result in high electricity rates that will increase tube well costs, putting additional strain on the already ailing agricultural industry.
