Cash crop under threat: Textile ministry opposes new sugar mills in cotton zone

Cotton-sowing area has shrunk with better returns on sugarcane, higher sugar prices

ISLAMABAD: The Ministry of Textile Industry has emphasised that provinces should stop granting permission for setting up new sugar mills in the cotton growing areas that has led to a decrease in cotton plantation.

Provinces may be asked to refrain from issuing no-objection certificates (NOC) for establishing, increasing capacity or shifting of sugar mills to the cotton growing areas, the Ministry of Textile Industry suggested in a presentation sent to the National Assembly Standing Committee on Food Security.

Sugarcane cultivation has widened in the wake of improved returns and timely supply of inputs. In the meantime, sugar prices have also gone up from Rs31 to Rs68 per kg in the last 10 years. The Ministry of Textile Industry argued that the price increase had encouraged the setting up of more sugar mills, which increased from 45 to 85 in the country. Of these, 45 were in Punjab, 32 in Sindh and eight in Khyber-Pakhtunkhwa.

Almost 70% of sugar mills are located in the core cotton zone of the country, especially in Punjab. The establishment of mills in the top cotton growing areas and increasing crushing capacity of the existing mills have led to 26% shrinkage in cotton areas, especially in south Punjab, including Rahim Yar Khan and Muzaffargarh.

“It is very likely that cotton production in the Mianwali district will also be affected after the installation of new sugar mills in that area,” the ministry said.

The issuance of NOC for new sugar manufacturing units is the prerogative of the provincial government. “Sugarcane cultivation in Punjab has risen 27% so far,” said an official.

Cotton area has also been squeezed by popularisation of maize and potato crops in the districts of Sahiwal, Faisalabad and Khanewal.

Cotton is a raw material that is used in textile industry which has a major share in Pakistan’s export earnings.

Weaker cotton prices were also a reason that farmers were opting for other profitable crops, the official said, adding cotton growers had been given no protection like producers of many industrial products as cotton imports from India brought down prices in the domestic market.

Owing to tensions between Pakistan and India, the government earlier slapped a ban on cotton imports from India. However, giving in to the pressure, it removed the curbs within three days.

“The government had earlier decided to accept only eight cargoes of Indian cotton, but it had to withdraw the decision following pressure from a powerful lobby,” the official added.

Published in The Express Tribune, January 13^th, 2017.

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