Estimates Indicate Record-High Cotton Crop for Pakistan

By Jim.Robinson|June 16, 2011

If estimates hold up, it looks as though Pakistan will set an all-time high in cotton production, potentially surpassing 15 million bales with the 2011/12 crop. Farmers have planted more than 3.2 million hectares of land. Cotton is one of Pakistan’s most important cash crops, according to an article published June 16 by The Nation newspaper, and contributes 1.4 percent of the country’s gross domestic product (GDP).

Higher domestic prices have encouraged farmers to increase their land dedicated to cotton, where spot rates touched a peak of $1.94 per pound this year due to short supplies and high international prices.

If Pakistan is to reach its economic target of 4.2 percent growth for the fiscal year beginning on July 1, increased cotton production will be one of the primary drivers. There are high hopes for the industry, which suffered terribly through last year’s flowing. The inclement weather decreased 2010/11 production by 2.4 percent over the previous year, dropping the predicted 14 million-bale crop to 11.7 million bales.

If Pakistan reaches its target of 15 million bales, it could reverse the trend of decreasing cotton production in Punjab, one of the largest and most important agricultural regions in the country. Over the last three years, the province’s cotton production has decreased by almost 12 percent, falling from 8.8 million bales to 7.8 million.