1- SHAUKAT AZIZ VISITS AMERICA.
2- WHERE DO WE GO WRONG IN MANAGING PROJECTS?
3- REVIVAL OF SICK UNITS.
4- TIME TO RESTRAIN THE AUTO SPECULATORS.
5- EDIBLE OIL CROPS.
6- SIGNIFICANCE OF SILVER FIBER IN FOREIGN EXCHANGE.

 

SIGNIFICANCE OF SILVER FIBRE IN FOREIGN EXCHANGE

 

Earnings of Pakistan during 1980 to 2000

 

By: *DR. IQBAL A. PANHWAR
**DR. MUHAMMAD AYOOB SHAIKH

Oct 07 - 13, 2002

 

Cotton has always remained a crop of social, religious, and economic importance throughout the ages of mankind. There is a great controversy as to the original home of cotton but a majority of historians do agree that it has its beginning in the area presently constituted by Pakistan. Although species of the plant are native to all tropical and semitropical countries yet in modern commerce had its beginning in India.

Similarly, the Encyclopedia Britannica states that, the use of fiber, a mass of unicellular hairs, which grow attached to the seed on all types of cotton plants, has been traced as for as 3000 BC. Though spun cotton yarns found in the ruins of Mohan-jo-daro, a city of the Indus valley and it is also learnt that how the patient hands of women of India plucked lint from seed, carded it, and spun yarn for weaving on their crude hand looms.

It is clear from all the sources that cotton, the mother of civilization, is the first production of the East and that the esteem goes to the Sindh which bestowed its fiber of civilization to the whole world. Thus cotton is indeed a 'queen' from Sindh, whose bloom has never faded and whose sovereignty has never been shared by any one so far.

At present cotton is grown all over the world. It is grown extensively near about 50 countries. In Pakistan cotton has been the most important contributor to the growth of national economy and it occupies the chief position in foreign exchange earnings of the country.

It is because of its significance that its area, production and the per hectare yield has increased year after year, but in some year it declined due to the virus attack, unfavoUrable climatic conditions at the time of sowing and harvesting.

AREA UNDER COTTON CROP

Cotton was cultivated on an area of about 1.2 million hectares in 1947. The area under cotton crop kept on increasing and in the year 1980-81 it was 2.188 million hectares. It is evident from the table-1 that the area under cotton crop has increased from 2.662 million hectares in 1990-91 to 2.983 million hectares in 1999-2000.

It is clear that during 20 year i.e., from 1980-81 to 1999-2000, the area under this precious cash crop has increased successively except the period 1989-90, 1994-95 and 1997-98 where the area under this crop have declined due to some extent. Table-1 shows the provinces wise area of cotton crop.

TABLE-1: AREA UNDER COTTON CROP
(000 HECTARE)

Year

Sindh

Punjab

NWFP

Balochistan

Pakistan

% (+)( -)

1980-81

599.0

1506.2

2.3

1.0

2108.5

-

1981-82

637.0

1573.1

2.8

0.3

2214.1

5.00

1982-83

647.0

1612.7

2.7

0.5

2262.9

2.20

1983-84

655.5

1562.5

2.5

0.2

2220.7

-1.86

1984-85

671.1

1567.7

2.4

0.4

2241.6

0.94

1985-86

615.4

1745.8

2.3

0.6

2364.1

5.46

1986-87

638.3

1864.0

2.2

0.7

2505.2

5.96

1987-88

629.6

1935.6

2.1

0.5

2567.8

2.49

1988-89

564.0

2053.8

1.4

0.2

2619.4

2.00

1989-90

561.3

2035.9

1.1

0.2

2598.5

-0.8

1990-91

536.6

2124.6

0.8

0.2

2662.2

2.45

1991-92

547.6

2286.9

0.8

0.2

2835.5

6.50

1992-93

397.4

2437.8

0.5

0.2

2835.9

0.01

1993-94

554.9

2249.2

0.2

0.3

2804.6

-1.10

1994-95

405.6

2244.4

0.3

2.5

2652.8

-5.41

1995-96

529.3

2463.3

0.2

4.5

2997.3

12.98

1996-97

601.2

2540.2

0.3

6.9

3148.6

5.09

1997-98

600.3

2348.4

0.5

10.5

2959.7

-5.99

1998-99

630.2

2282.8

0.4

9.4

2922.8

-1.24

1999-2000

633.5

2329.3

0.3

20.0

2983.1

2.06

Total

11655.7

40764.2

26.1

59.3

52505.3

 

Average

582.78

2038.2

 

2.965

2625.26

 

Share of each

22.199

77.64

0.0497

0.1129

100

 
Source: Agricultural Statistics of Pakistan 1999-2000, Government of Pakistan, Ministry of Food, Agriculture and LiveStock, Division, Economic Wing Islamabad. P., 29

The Table-1 reveAls that the area under cultivation of cotton has been increasing during the period from 1980-81 to 1999-2000. It is ascertained that it was 2108.5 thousand hectares in the year 1980-81, out of it 599 thousand hectare were grown in Sindh, 1506.2 thousand hectares were grown in Punjab, 2.3 thousand hectares were grown in NWFP and 1.0 thousand hectares were grown in Balochistan. Similarly total area under cultivation of wheat increased to 2983.1 thousand hectares in 1999-2000, from it 633.3 thousand hectares were grown in Sindh, 2329.3 thousand hectare were grown in Punjab, 0.3 thousands hectares were grown in NWFP and 20.0 thousands hectares were grown in Balochistan. Thus we can say that total area under cultivation of cotton crop during 1999-2000 was 41.47% more when compared to that of 1980-81. Thus it can be concluded that in Sindh and Balochistan production of cotton increased because people have given divorce to rice and sugarcane crop due to the shortage of water.

The cotton production during 1999-2000 was 11.240 million bales, which speaks of the untiring efforts made by the growing community for producing such a sizable crop despite irrigation water scarcity for which they need to be acknowledged. Government authority urged the entire cotton textile industry that the growers should be properly rewarded for their hard labour.

Now cotton quality plays a much significant role in determining the market value. With the fast approaching 2005, when the quotas will vanish, every nation will have to compete and create its credibility in the free international market, in this regard necessary measures are thus urgently needed to upgrade the status of Pakistani cotton in the world market. This also calls for rapid improvement in the cotton production and ginning process through proper handling procedures and ginning practice. The Pervez Musharraf government is well prepared to provide all the possible support to the private sector for producing high quality and contamination free cotton.

The private sector stakeholders are also required to play a more important role in implementing such a programme to the benefit of all the segments of the cotton economy.

Since the establishment of Pakistan, Production of cotton was 1.10 million bales has increased to 4.201 million bales in 1980-81.

The data pertaining to the production of cotton crop in Pakistan during the period under study can be reviewed from the table 2.

TABLE -2: PRODUCTION OF COTTON CROP (000 BALES)

Year

Sindh

Punjab

NWFP

Balochistan

Pakistan

% (+)( -)

1980-81

1406.9

2789.3

2.8

2.0

4201.0

-

1981-82

1550.2

2844.2

3.4

0.5

4398.3

4.696

1982-83

1584.5

3255.2

3.3

0.9

4843.9

10.131

1983-84

1210.0

1694.2

3.0

0.5

2907.7

-33.955

1984-85

1475.6

4450.9

3.0

0.9

5930.4

103.955

1985-86

1449.2

5701.2

2.9

1.2

7154.5

20.641

1986-87

1304.6

6451.0

2.8

1.3

7759.7

8.459

1987-88

1373.7

7255.4

2.7

1.1

8632.9

11.253

1988-89

1108.0

7274.8

1.8

0.5

8385.1

-2.870

1989-90

1103.4

7454.2

1.7

0.5

8559.8

2.083

1990-91

1124.6

8501.3

1.3

0.5

9627.7

12.475

1991-92

1403.2

11416.8

1.7

0.5

12822.2

33.180

1992-93

815.5

8237.1

0.7

0.5

9053.8

-29389

1993-94

1417.0

6523.0

0.4

0.7

8041.1

-11.185

1994-95

1282.1

7410.0

0.4

4.6

8697.1

8.158

1995-96

1882.1

8720.0

0.3

13.1

10594.9

21.821

1996-97

1861.5

7103.4

0.6

20.0

9374.2

-11.521

1997-98

2250.2

6817.0

0.8

30.5

9183.8

-02.031

1998-99

1335.5

6628.0

0.7

27.4

8790.2

-4.285

1999-2000

2377.4

8804.0

0.6

58.0

11240.0

27.869

Total

30667.2

129331

34.9

165.2

160198.4

-

Average

1533.36

6466.55

1.745

8.26

8009.92

-

Share of each Province

19.143

80.73

0.021

1.103

100

-

% increase over the period

69%

216%

-7879%

2800%

-

-

Source: Agricultural Statistics of Pakistan 1999-2000, Government of Pakistan, Ministry of Food, Agriculture & Livestock Division, Economic Wing Islamabad pp-29-30

It is clear from the table-2 that the production of cotton had attained a record level in 1991-92 and in 1999-2000. Pakistan on an average produced 8009.91 thousand bales cotton annually during the period from 1980-81 to 1999-2000. Out of the total production of cotton in Pakistan, Sindh shared 19.14%, Punjab shared 80.73%, NWFP 0.021% and Balochistan 0.103%. Production of cotton increased mainly due to the introduction of new varieties of cotton in the country.

PER HECTARE YEILD OF COTTON

The per hectare yield of cotton in Pakistan during the period under review as shown in table 3.

TABLE-3: YIELD PER HECTARE IN KGS

Year

Punjab

Sindh

NWFP

Balochistan

Pakistan

1980-81

315

399

207

340

339

1981-82

308

413

207

283

338

1982-83

343

417

208

306

364

1983-84

184

314

204

425

223

1984-85

483

374

213

383

450

1985-86

555

401

214

340

515

1986-87

589

348

216

316

527

1987-88

638

371

219

375

572

1988-89

602

334

219

425

544

1989-90

623

334

263

425

560

1990-91

681

356

276

425

615

1991-92

849

435

361

425

769

1992-93

574

349

238

425

543

1993-94

493

465

340

595

488

1994-95

561

537

226

312

557

1995-96

602

598

255

495

601

1996-97

475

636

340

495

506

1997-98

494

662

272

494

528

1998-99

494

576

298

496

512

1999-2000

643

638

340

493

641

Total

10506

8957

5116

8273

10192

Average

525.3

447.85

255.8

413.65

509

Source: Agricultural Statistics, Government of Pakistan p-29

It is the evident from the table 3 that the yield of cotton crop has increased from 339 kgs per hectare in the year 1980-81 to 641 kgs per hectare in 1999-2000. The yield of cotton crop increased 89% during the study period .the maximum yield was 769kgs per hectare in the year 1991-92 and minimum yield was 223 kgs in the year 1983-84.

Study ascertained that average per hectare yield in Punjab province ranks at the top when compared to Sindh, NWFP and Balochistan. It was average 525.3 kgs per hectare in Punjab whereas it was 447.85 kgs per hectare in Sindh, 225 kgs per hectare in NWFP and 413.60 kgs in Balochistan during cropping year 1980-81 to 1999-2000.

Thus there has been overall increase in the per hectare yield of cotton during most of the year under review, however in some of the years it declined.

For the first time in the cotton growing history of Pakistan the seed cotton world average was 1620 kgs per hectare but Pakistan seed cotton per hectare yield was 1923 kgs, it means it was 18.17 % more in the year 1997. As evidence is given in the table 4.

TABLE-4: AREA, PRODUCTION AND YIELD PERE HECTARE OF COTTON CROP IN THE MAIN GROWING COUNTRIES

S.No.

NAME OF COUNTRY

Area (000) Hectares

Production (000) Tonnes

Yield (Kgs/ hectare)

   

1997

1998

1999

1997

1998

1999

1997

1998

1999

1

India

8850

9070

9070

7913

7720

7720

894

851

851

2

USA

5425

4324

5489

10382

7897

9817

1914

1827

1789

3

China

4491

4280

4183

13809

13503

12000

3075

3155

2869

4

Brazil

662

824

678

836

1176

1395

1262

1427

2059

5

Pakistan

2960

2923

2983

4686

4485

5735

1584

1536

1923

6

Turkey

722

731

731

2105

2093

2093

2917

2864

2864

7

Egypt

368

310

350

950

630

790

2582

2032

2257

8

Mexico

207

218

160

632

659

659

3053

3021

4121

9

Sudan

162

108

140

234

155

205

1443

1462

1464

10

Iran

238

229

229

451

460

460

1891

2004

2004

11

World

33726

33006

34308

56782

53195

55573

1684

1612

1620

Source: FAO Quarterly Bulletin of Statistics 1999 vol. 12 p-3,4

It is also clear from the table 4 that the Pakistan ranked fourth globally area in production .it is also clear from the above study that cotton is the main cash crop which contributes significantly to national economy. It accounts for 11.7 per cent of value added in agriculture and 2.9 % of GDP. In addition to providing raw material to the local textile industry, the lint cotton is a major export item. As against the target 9.7 million bales, the size of the cotton crop is estimated at 11.240 million bales in the year 1999-2000 which is 27.9% higher than the year 1998-1999. The cotton crop increased due to mainly to an increase in the area because of the shifting of sugarcane area to cotton crop and less attack of insect, pests /diseases on the crop during the year.

EXPORT OF RAW COTTON

Our country is one of the leading exporters of cotton in the world. The export of raw cotton increased from 325 thousand metric tons, earned Rs 52.03 billion in 1980-81 which enhanced to 840 thousand metric tons worth Rs 180.32 billion in the year 1988-89 which enhanced to 840 thousand metric tons worth Rs. 180.32 billion in the year 1988-89. After 1991-92 the export of cotton declined continuously and it reached to only 2 thousand metric tonnes worth Rs. 1.16 billion. As shown in the table-5

TABLE-5: EXPORT OF COTTON FOR THE PERIOD FROM 1980-81 TO 1999-2000

Year

Quantity (000) metric tonnes

Value Rs. in million

Unit Value Rs./mt

1980-81

325

5203

16010

1981-82

231

2938

12719

1982-83

255

3897

15282

1983-84

98

1772

18082

1984-85

263

4368

16608

1985-86

639

8291

12975

1986-87

641

7676

11975

1987-88

502

10759

21432

1988-89

840

1832

21467

1989-90

295

9550

32426

1990-91

282

9553

33910

1991-92

455

12944

28435

1992-93

263

7001

26627

1993-94

75

2383