NationalVOLUME 21 ISSUE # 15

Cotton in crisis: Governance failures and policy distortions deepen agricultural decline

Over the past decade, Pakistan’s cotton crop has endured a relentless series of climate shocks. Intense heatwaves, erratic monsoon rains, prolonged dry spells and devastating floods have repeatedly disrupted planting cycles and reduced yields.
Yet while climate volatility has undeniably tightened its grip on the sector, weather alone does not explain cotton’s sharp decline. The deeper, more troubling crisis lies in governance failures, regulatory distortions and policy choices that have steadily weakened one of Pakistan’s most strategic crops.
A recent study by a local think tank argues that man-made weaknesses — not just environmental stress — have amplified the damage. Weak pest surveillance, substandard seed regulation, underinvestment in mechanisation and the politically driven diversion of prime cotton land to sugarcane have collectively eroded Pakistan’s comparative advantage. Once largely self-sufficient in cotton, the country now spends an estimated $2–3 billion annually on imports to bridge the widening gap between domestic production and the demands of its textile industry.
Cotton is not merely another crop in Pakistan’s agricultural portfolio. It underpins the textile sector, which accounts for a significant share of exports, employment and industrial activity. A shrinking cotton base therefore has cascading effects on foreign exchange earnings, rural livelihoods and industrial competitiveness. The current decline signals not just an agricultural setback but a structural vulnerability in the broader economy.
Among the most pressing concerns is the deterioration in seed quality and regulation. Pakistan’s cotton fields are dominated by genetically modified Bt varieties that were initially introduced to combat pest infestations. However, these varieties require constant upgrading to remain effective against evolving insect resistance and shifting climate conditions. In the absence of sustained research investment and rigorous regulatory oversight, pest resistance has increased and yields have stagnated.
Farmers frequently report that Bt varieties no longer deliver the resilience or productivity they once promised. Rising temperatures have accelerated pest adaptation, while inconsistent seed quality has reduced both output and fibre strength. Weak extension services and limited agronomic support further compound the problem, leaving growers to navigate increasingly hostile conditions with outdated tools.
In response to these concerns, the government introduced the Seed (Amendment) Act 2024, which seeks to tighten certification standards, improve digital traceability throughout the supply chain and centralise regulatory oversight. While the legislation aims to restore discipline to the seed market, it has also triggered apprehension among stakeholders. Critics argue that stricter compliance requirements and enhanced intellectual property protections could disproportionately favour large private seed companies. Without safeguards to protect farmer seed rights or phased implementation for smaller firms, the reforms risk consolidating market power rather than revitalising innovation.
Beyond seed issues, institutional fragmentation continues to undermine the sector. There is currently no single authority accountable for national cotton outcomes. Multiple federal and provincial bodies operate in silos, leading to poor data integration, inconsistent policy execution and limited monitoring of results. For a crop so central to Pakistan’s economic structure, this lack of unified governance is a glaring weakness.
The absence of coordination has tangible consequences. Mechanisation remains limited, reducing efficiency and raising labour costs. Agronomic advisory services are underdeveloped, leaving farmers without timely guidance on pest management or climate adaptation. Crop insurance penetration is low, exposing growers to high financial risk. Traceability systems are weak, hampering quality verification and export compliance. These gaps collectively erode competitiveness in international markets, where buyers increasingly demand transparency and sustainability standards.
Water management is another area where governance shortcomings are evident. Traditional flood irrigation remains widespread, contributing to water wastage and soil degradation. In a country already facing mounting water stress, inefficient irrigation methods threaten both productivity and environmental sustainability. Integrating modern techniques such as drip irrigation could help stabilise yields under rising climate pressures, but adoption remains limited due to policy inertia and inadequate incentives.
Perhaps the most damaging outcome of persistent governance failures has been the gradual shift of prime agricultural land from cotton to sugarcane. In southern Punjab, historically a cotton stronghold, districts like Rahim Yar Khan have seen substantial acreage converted to sugarcane cultivation. Unlike cotton, sugarcane is a water-intensive crop that places heavy demands on already strained irrigation systems.
This shift has not occurred in isolation. Politically connected sugar mill owners wield significant influence within policymaking circles. Sugarcane’s multi-year cultivation cycle and guaranteed mill procurement provide farmers with a sense of security, but they also lock land into water-intensive production for extended periods. The expansion of sugarcane has reduced cotton acreage, increased pressure on groundwater resources and heightened risks of soil salinisation.
The prioritisation of sugarcane over cotton reflects short-term economic incentives rather than long-term agricultural planning. While sugarcane may offer immediate financial returns, it does so at the cost of ecological balance and industrial sustainability. Cotton’s decline, in contrast, weakens the textile value chain and increases reliance on costly imports.
Reversing this trajectory requires more than piecemeal reform. A centralised and accountable governance framework for cotton is essential. Clear institutional responsibility must be established, supported by integrated data systems to guide policymaking and monitor outcomes. Seed quality standards need strengthening without marginalising smaller players. Research investment must accelerate to develop climate-resilient varieties. Mechanisation, crop insurance and advisory services should be expanded to reduce farmer vulnerability.
Equally critical is a reassessment of crop prioritisation. Agricultural policy must align with ecological sustainability and industrial strategy, limiting the dominance of entrenched interests that skew incentives toward water-intensive crops. Without recalibrating these priorities, Pakistan risks further depletion of natural resources and deeper industrial dependence on imports.
Climate change will continue to challenge Pakistan’s agriculture, but governance determines resilience. The cotton crisis is not merely a story of rising temperatures and erratic rainfall; it is a cautionary tale of regulatory drift, institutional fragmentation and policy distortions. Restoring cotton’s vitality demands political will, structural reform and a commitment to balancing economic ambition with ecological prudence. Without such measures, the erosion of Pakistan’s cotton base may become irreversible, undermining both agricultural stability and economic resilience for years to come.

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