Cotton growers have expressed serious concern over the sharp fall in domestic cotton prices and sales in total production
Despite a significant drop in total output, local cotton producers and ginners in Pakistan’s Punjab region are very concerned about the sharp drop in domestic cotton pricing and sales.
The Dawn reports that specialists blame the record-high imports of cotton from outside markets for this concerning trend.
By December 15, there were 5.36 million bales of ginned cotton in the nation, a 33% decline from the same time previous year, according to the Pakistan Cotton Ginners Association (PCGA).
According to The Dawn, the main cotton-producing regions had the biggest output drops, with Sindh and Punjab seeing decreases of 34% and 32%, respectively.
According to the data, textile mills have only purchased 4.7 million bales during this time, which is 34% less than they did the year before. Furthermore, exports have drastically decreased by 84%, reaching 46,300 bales.
Despite a 33% decrease in cotton output, Ihsanul Haq, chairman of the Cotton Ginners Forum, said that the nation’s ginning factories presently have around 6.14 million bales in store, which is comparable to last year.
He explained this by saying that local purchases are subject to an 18% sales tax, but imported cotton and yarn are exempt. Consequently, during the 2024–25 cotton year, textile mill owners are importing more cotton and yarn.
Pakistan imported 182,000 metric tonnes (about 11.38 million bales) of cotton on November 30, according to official statistics, with a significant amount of these imports taking place in October and November, the Dawn reported. Approximately 6,00,000 bales of yarn were also imported at that time.
An estimated 55 to 60 million bales of cotton or cotton yarn would be imported by Pakistan this year, according to experts, resulting in a significant outflow of foreign cash.
Haq has urged the federal government to impose a sales tax on imported yarn and cotton, with domestic purchases being exempt. He contends that doing so would boost regional industries and agriculture while also bolstering the US economy.
