Declining Cotton Output and Mounting Economic Pressures

By: Sajid Mahmood

PCGA Report: Declining Cotton Output and Mounting Economic Pressures

According to the Pakistan Cotton Ginners Association’s (PCGA) report released on August 15, 2025, the latest cotton statistics present a comprehensive yet alarming picture of the country’s current cotton situation and production trends. The report shows that this year total national cotton arrivals stood at 887,401 bales compared to 1,075,028 bales recorded by the same date in 2024. This reflects a decline of 187,627 bales translating into a 17.45 percent decrease. This shortfall is not merely an agricultural concern; it signals a direct and significant economic loss for the country as cotton remains the backbone of Pakistan’s textile industry, exports and the livelihood of millions of farmers.

The data indicates that cotton arrivals in Punjab reached 369,550 bales which is 23,186 bales fewer than last year marking a 5.90 percent decline. The situation in Sindh was more severe with 517,851 bales reported this year against 682,292 bales last year, a shortfall of 164,441 bales or 24.10 percent. On the other hand Balochistan showed relative improvement with arrivals of 30,600 bales this year compared to 26,100 last year reflecting an increase of 4,500 bales or 17.24 percent. The report also noted that 244 ginning factories were operational across the country.

In Punjab the cotton crop continues to face serious challenges. Cotton leaf curl virus remains a major threat while pests such as whitefly, mealybug and thrips have inflicted significant damage. Moreover recent heavy rains, smaller boll size and weight along with June and July heatwaves caused increased fruit shedding. These conditions have severely impacted farmers’ incomes and put additional pressure on the provincial economy. As a result Punjab’s production target of 5.5 million bales appears difficult to achieve this year.

In Sindh the primary reason behind the sharp decline in cotton output is a reduction of nearly 35 percent in the sown area largely due to water shortages at the time of sowing. In addition severe heatwaves in June and July dealt a heavy blow to the crop. Cotton leaf curl virus, unavailability of quality high-yielding seeds and rising input costs have further aggravated the situation. Despite these challenges production in Sindh is estimated at around 2 million bales.

The report underlines an important reality: Pakistan’s cotton crisis is not only agricultural but also economic in nature. A shortage of raw cotton will inevitably disrupt the textile industry, reduce exports, deplete valuable foreign exchange and slow down the country’s industrial momentum. This scenario demands urgent national-level intervention for cotton revival.

First investment in agricultural research institutions must be significantly increased to develop high-yielding, climate-resilient and pest-resistant cotton varieties tailored to local conditions. Secondly farmers must be provided with quality seed, subsidized fertilizers and assured water availability to make cotton cultivation a profitable enterprise. In addition the announcement of a support price for cotton would safeguard farmers against exploitation and ensure fair returns for their labor.

Overall the PCGA report emphasizes that without timely and effective investment in the cotton sector Pakistan will be forced to spend billions of dollars on raw material imports further widening the trade deficit and deepening the financial crisis. Reviving cotton is synonymous with reviving the national economy and this requires coherent policies, long-term planning and farmer-friendly measures as an urgent priority.

Click here to find complete arrival report of PCGA

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