Key Takeaways
- Intense heat, dry weather, and water shortages damage cotton crops in key growing regions.
- Cotton prices rise as factories scale back or shut down operations due to limited arrivals.
- Industry leaders call for government support to revive industrial units and reduce job losses.
Pakistan’s cotton industry is facing a significant crisis, with soaring temperatures, prolonged dry weather, and acute water shortages severely damaging crops in key growing regions. According to industry officials, the situation has already driven up cotton prices, raising concerns over higher imports, factory shutdowns, and job losses.
In Sindh, particularly in areas like Tando Adam, ginning factories have shut down only a month after starting operations due to limited cotton arrivals. In Punjab’s second-largest cotton-producing region, Rahim Yar Khan, there are no operational ginning factories for the first time in 15 years by mid-July.
The crisis is not just affecting production but also disrupting Pakistan’s textile supply chain. Industry leaders warn that continued factory closures could lead to widespread job losses across the textile industry. The sector is currently struggling with an 86 percent sales tax burden on ginning, which remains unresolved in the latest federal budget.
To mitigate the impact of the crisis, the Punjab Agriculture Department has issued an emergency advisory urging farmers to irrigate crops more frequently using smaller amounts of water and apply micronutrients such as boron and potassium nitrate. However, industry leaders are critical of government priorities, arguing that greater investment in industrial development could help revive over 1,600 industrial units and reduce Pakistan’s dependence on imports and external financial assistance.
Ihsanul Haq, Chairman of the Cotton Ginners Forum, has called for both federal and provincial governments to prioritize business and industrial growth. He believes this approach would support the country’s textile sector and broader economy. The crisis highlights the urgent need for comprehensive measures to address climate change impacts on agriculture and industry in Pakistan.
The situation is expected to worsen as cotton prices continue to rise, with traders warning that prices could climb further due to tightening supplies. This development poses a significant challenge for farmers, factory owners, and workers across the country.
