Growers opt for ‘profitable’ crops, shunning cotton due to low prices
Published on: June 17, 2024.
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Low Cotton Prices and Lack of Government Support Lead to Shift in Crop Cultivation in Punjab
Cotton growers in Punjab, disillusioned by low prices for their crop and the lack of government support, have turned to alternative crops, resulting in a decrease in cultivation area and yield. This shift is most evident in Bahawalpur, Multan, and Dera Ghazi Khan divisions, known as ‘Punjab’s cotton valley’.
According to data from the Punjab Crop Reporting Service (CRS), the cultivation area for white lint fell short of its target by 19%, reaching 3.22 million acres during the Kharif season of 2024. This is a decline of over 32% compared to the previous season’s 4.15 million acres. This decrease comes after a bumper crop during July 2023 to March 2024.
In the last fiscal year, cotton production in Pakistan more than doubled from 4.91 million bales to 10.22 million bales, according to the Pakistan Economic Survey. The cultivation area also increased for the second consecutive year, reaching 2.42 million hectares in 2023/24, a 13.1% increase compared to 2022/23.
The decline in cultivation area for cotton this season is expected to impact the overall crop yield, which could have negative consequences for the textile sector, as cotton is the main raw material. The sector has already experienced an 8.3% contraction during July-March of 2024, following a 16% dip in the same period last year.
Cotton growers are now turning to more profitable crops with lower input costs. In Bahawalpur division, the main cotton-growing area in Punjab, growers are opting for sesame and rice. The area dedicated to sesame cultivation increased by 82.9% this season, reaching 1.7 million acres. Similarly, rice nurseries have expanded, with a total coverage area of 6.73 million acres in the province, surpassing the initial target of 5 million acres.
Dr Abdul Qayyum, CRS DG, explains that the production cost of seed cotton (phutti) has risen from Rs116,930 per acre last season to Rs146,413 per acre this year. In response, CRS increased the suggested price of seed cotton from Rs8,858 to Rs9,243 per 40kg. The government had set an intervention price of Rs8,500 per 40kg for seed cotton last year, but failed to uphold this promise, causing prices to fall below Rs7,000 per 40kg.
As a result, many growers, like Muhammad Azeem from Rahim Yar Khan district, have decided not to cultivate cotton this year. Azeem points out that the Punjab government’s decision not to purchase wheat from farmers has also left cotton growers concerned about similar treatment of their crop.
Source: Dawn
