The shortfall in the cotton crop due to cultivation of low quality BT seed and mealy bug attack, has pushed the country's dependency on the import, which jumped by 100 percent to one billion dollar mark during the last fiscal year 2008, despite the fact that Pakistan is largest agricultural country in Asia.
Government fixed cotton production target of 14.1 million bales in 2008, however the country failed to achieve production target due to dangerous pest attack on the standing cotton crop and delay in the import of pesticides.
Therefore, crop estimation committee of Ministry of Food Agricultural and Livestock, three times revised the production target and cut the target finally fixing it at 11.6 million bales, which was also not achieved and country's over all cotton production stood at 11.3 million bales during the fiscal year 2008.
The shortfall in cotton production and continuous export of cotton has pushed the import of this commodity at its peak level of over one billion bales, during last fiscal year up by 100 percent, traders said.
During the last fiscal year the country has spend some 1.291 billion dollar on cotton import as compared to 646.568 million dollar during fiscal year 2007, depicting an increased of 644 million dollar in fiscal year 2008.
In term of quantity, cotton import also shows a healthy growth, as during the last fiscal about 5.39 million bales were imported as against some 2.76 million bales in fiscal year 1007, depicting an increase of 97 percent in fiscal year 2008.
However, cotton import during the June 2008 has declined by 50 percent to 42.79 million dollar as compared to 82.38 million dollar in June 2007.
"Sowing of low quality and uncertified Bacillus Thuringiensis (BT) seed, besides poor irrigation system has badly hurt the cotton crop during the last fiscal year," said Ghulam Rabbani a leading cotton trader.
He said that this year growers also have cultivated mealy bug affected and uncertified seed, which may hurt the cotton crop.
"Insufficient quality cotton and as well as delay in cotton crop are some other major factors behind the rising import of cotton," Rabbani said.
Present scenario also reflects that cotton import would further increase in the near future, however it depends on the cotton production of the current fiscal 2009, he added.
He said that textile milers believed that in the near future gap between demand and supply would further go up due to the short crop; therefore they are more depending on the imported cotton and placing new import order.
It may be mentioned here that country's cotton consumption stood at 16-16.5 million bales, which is higher then cotton production of 11.3 million bales, while cotton export further has widened supply and demand gap.
On the other hand the country is likely to import some 4-4.5 million cotton bales worth one billion dollar during current fiscal due to the widening supply and demand gap, besides quality issues.
Country's cotton production is rapidly declining and during the last fiscal year it has achieved a production of 11.3 million bales against the target of 14.1 million bales, however in the world ranking Pakistan remain stood at fourth largest cotton producer.
The federal government has set a target of 14.2 million bales production for the current fiscal year 2009, however the it is difficult to achieve the set target due to lees then target sowing of uncertified Bacillus Thuringiensis (BT) seeds.
Government had formally allowed sowing of BT cotton in 2008 aimed to increase the production of cotton, get better quality cotton and to curtail the import of cotton, however severe attack of mealy bug had badly hurt the standing cotton crop in 2008.
However, current year growers also have cultivated BT cotton on the over 80 percent areas in the Sindh and Punjab to get much higher cotton production. Therefore, again federal government has fixed cotton production target of 14.2 million bales for the fiscal year 2009 against the consumption of 16-16.5 million bales.
Importers are expecting over 3-4 million cotton bales shortfall during current fiscal year due to the expected less the target cotton production and high demand of long stable cotton by the textile millers.
Therefore, it is expected that cotton import during 2009 would be around 4 million bales estimating over one billion-dollar, as the price of the cotton is already on upward side due to the cotton crisis worldwide.
While the export of cotton from country, long staple cotton demand, contamination issue and low-grade cotton production are the some major factors behind the increasing import of raw cotton.
Cotton is the major raw material of the textile industry, which contribute over 57 percent in the total country's exports and it has also a major share in overall industry.
Although, the cotton prices in the world market are on rise, however the millers and traders would be compelled to import huge quantity due to increasing demand.
"At present cotton prices stood at 80-88 cent per pound in the international market and Pakistan is also exporting its cotton at 78-80 cent per pound,".
Every year Pakistan is spending millions of dollar on import of raw cotton to meet local demand due to unavailability of quality cotton demand by textile industry.
It may be mentioned here that country is missing its set cotton production target since two years and in 2007 country missed cotton production target of 13 million bales by some 0.6 million bales.
In fiscal year 2008, the shortfall in the cotton crop due to cultivation of low quality BT seed and mealy bug attack already has pushed country's dependency on the import, which jumped by 100 percent.
During the last fiscal year country have spend some 1.291 billion dollar on the cotton import as compared to 646.568 million dollar during fiscal year 2007, depicting an increased of 644 million dollar in fiscal year 2008.
In term of quantity, cotton import also shows a healthy growth, as during the last fiscal about 5.39 million bales was imported as against some 2.76 million bales in fiscal year 1007, depicting an increase of 97 percent in fiscal year 2008.
However, cotton import during the June 2008 has declined by 50 percent to 42.79 million dollar as compared to 82.38 million dollar in June 2007.