Major Crops Projected To Surpass Production in FY22: SBP Report

State Bank of Pakistan: in its quarterly report, projected higher production of major kharif crops – cotton, sugarcane and rice – over the last year.

Higher market prices, favorable weather conditions and better crop management practices had a positive impact on agricultural output.

Area under cultivation for rice and sugarcane expanded, while cotton gained in yields, the report said.


According to provisional estimates, cotton crop production in FY22 is projected at 9.4 million bales; showing a significant increase of 33.1 percent over last year. It is pertinent to mention that the overall area under cotton cultivation continues to decline. Average cotton cultivation area dropped to 2.6 million hectare during FY13 to FY22, from an average of 3.0 million hectares between FY03 to FY12. During FY22, area under cotton crop cultivation declined to 1.9 million hectares from 2.1 million hectares last year.


As per latest estimates, a bumper sugarcane crop is expected during FY22. The output stood at 87.7 million tons, up 8.2 percent over last year, while exceeding the target by 17.1 percent. The increase in cultivated area largely explains the gain in production, as yields remained largely unchanged.

The higher domestic sugar price and better sugarcane procurement price incentivized growers to dedicate more area to sugarcane. Moreover, the government also supported farmers by directing sugar mills to clear their outstanding dues to farmers.

Beside these factors, anecdotal evidence suggests that on the back of rise in sugar prices, sugar mill owners provided credit support to farmers to get more sugar volumes with better sucrose content.


Rice production stood at 8.8 million tons during FY22 kharif season, higher than the target of 8.2 million tons and 5.0 percent more than last years’s production. Similar to sugarcane, the increase in cultivation area explains the growth in rice production, as yield remained similar to the previous season. For the last couple of years, area under rice cultivation is witnessing rising trend, especially in Punjab. Rice has become a promising crop for the farming community due to higher domestic prices and strong external demand. The higher demand for Pakistan’s rice in export markets amid competitive unit prices made the rice crop a profitable investment for growers. As domestic rice production exceeds the annual requirement of 3.7 million tons, the country often has exportable surplus.Therefore, global rice demand and prices play important part in determining the rice production.

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