Heatwave and water shortages raise fears of sharp fall in cotton output

LAHORE: Pakistan’s cotton sector is facing the prospect of a steep decline in output after an intense heatwave, the absence of rainfall and acute canal water shortages damaged the crop in key growing areas.

The situation has disrupted activity across the supply chain, with ginning factories and textile mills shutting units in different parts of the country as cotton arrivals to processing centres remain scarce. The crop has come under severe stress, particularly in Sindh, where water shortages have compounded the impact of extreme temperatures.

The heat has caused widespread wilting and encouraged pest attacks, including mites and lice, hampering plant development and affecting both yield and fibre quality. The resulting shortage has pushed up market prices and is expected to increase reliance on costly cotton imports.

Lint prices rose by Rs400 per maund over a week to Rs18,200 in Punjab and Rs17,700 in Sindh, with brokers expecting further increases in the days ahead.

Factories affected in Sindh and Punjab

The industry’s difficulties are being aggravated by what sector representatives describe as an 86 per cent sales tax burden on ginning, an issue they say was not addressed in the federal budget.

In Tando Adam, a major cotton centre in Sindh, ginning factories have shut down about a month after beginning operations. In Rahim Yar Khan, Punjab’s second-largest cotton zone, residents are seeing what is called a first in 15 years, with no ginning factory operating by the second week of July.

As more textile mills become non-operational, industry experts have warned of the risk of large-scale job losses.

Punjab issues crop advisory

In response to the extreme weather, the Punjab Agriculture Department has issued an emergency advisory for growers. The department has urged farmers to irrigate more frequently while reducing the amount of water used in each cycle.

It has also advised heavy application of micronutrients such as boron and recommended a weekly spray containing two kilograms of potassium nitrate mixed in 100 litres of water for early-sown crops to help plants cope with heat stress.

Industry calls for policy shift

Chairman of the Cotton Ginners Forum Ihsanul Haq criticised the government’s economic priorities, saying more emphasis should be placed on supporting production and industry.

He said governments elsewhere work to strengthen domestic production, but Pakistan had set aside more than Rs800 billion for charity schemes rather than industrial development. He argued that this amount could have been enough to revive more than 1,600 major industrial units within a year.

The forum urged federal and provincial governments to redirect policy towards business expansion, saying industrial revival was essential for economic recovery and for reducing dependence on the International Monetary Fund.