Pak textiles hit by persistent low cotton output

Sunday, September 13, 2009
By Mansoor Ahmad
LAHORE: Pakistan is producing less cotton than its consumption since 2005 as its consumption is constantly on rise while the production has declined below the 2005 level affecting the competitiveness of its textile.

According to the statistics revealed at the 68 plenary session of International Cotton Advisory Committee Pakistan produced 2.194 million metric ton (MT) of cotton in 2005 while its industry that year consumed 2.532 MT of cotton. The cotton production was 2.147 MT in 2006, 1.894 MT in 2007, 1.960 MT in 2008, 2.08 MT in 2009 while its consumption increased to 2.633 in 2006, 2.637 MT in 2007, 2.452 MT in 2008 and 2.55 MT in 2009.

Indian cotton production on the other hand increased from 4.097 MT in 2005 to 5.340 MT in 2009 -an increase of over 25 per cent in five years. Its cotton consumption during this period increased from 3.655 MT in 2005 to 4.040 MT in 2009 as it increased its cotton export surplus over1.100 MT.

China the largest producer and consumer of cotton in the world also increased it cotton production from 6.616 MT in 2005 to 7.47 MT in 2009. Its cotton consumption however slightly declined from 9.439 MT in 2005 to 9.270 MT in 2009.

Cotton production in United States the third largest producer in the world declined from 5.201 MT in 2005 to 2.880 MT in 2009. Its cotton consumption also decreased from 1.278 MT in 2005 to only 0.760 MT in 2009.

The increase in cotton production in India and China is attributed to the switching over from traditional cottonseed to pest resistant in 2009 as it continued to increase its export BT cotton that has still not been introduced in Pakistan.

The ICAC estimates show that more than half of world cotton area was planted to biotech varieties in 2009/10, and the benefits of biotech traits in cotton are spreading to more countries and growers.

The speakers at plenary session informed the ICAC Committee that the disruptions in the supply of inputs, low levels of technology adoption, and weak marketing systems result in lower returns to growers, which together with delayed payments are the major impediments to smallholder cotton production.

The Committee was informed that cottonseed and stalks, by-products of cotton production, had traditionally received limited attention because of low values relative to lint. However, with the increase in prices of oilseeds since 2006, by-products now deserve greater attention. The Committee reviewed information about a wide range of uses of cottonseed and stalks for vegetable oil, vegetable oil spreads, animal feed, soap, paper, binder in bricks, and other uses.

The ICAC Secretariat reported that more than 80 per cent of world cotton production had received support from Governments in 2008/09. The aggregate value of support more than doubled to approximately US$6 billion. The Secretariat in its report to the Committee noted that these subsidies distort the world cotton economy, and many countries urged immediate elimination.

Farmer representatives at the session informed the committee that food security begins with income security. The Committee noted that cash income earned from cotton production allows farmer households, especially those in arid and semi-arid areas where food crops are difficult to produce, to pay for food, health care, school fees and other necessities that would not otherwise be available. It was noted that cotton contributes to food security by providing the means to finance inputs and by enhancing soil fertility and retarding the development of pests and diseases in properly managed crop rotation systems involving cotton and other crops. Link...