KARACHI: The cotton market has shown overall stability in prices, with an improvement in trade volume recorded. However, recent rains in Punjab have disrupted cotton trade. Meanwhile, the market awaits the government’s notification regarding the Export Facilitation Scheme (EFS).
Experts report that Pakistan’s cotton production has sharply declined due to unfavorable weather conditions and government policies, dropping from a record 15 million bales to just 5.5 million bales.
Chairman Pakistan Cotton Ginners Forum Forum Ahsan ul Haq expressed concern over the situation, stating that this decline is severely impacting the country’s foreign exchange reserves.
Amid these developments, the Pakistan Central Cotton Committee Cotton Committee (PCCC) and the All Pakistan Textile Mills Association (APTMA) have reached an agreement on the issue of cotton crop residues. Additionally, the Punjab government has set an ambitious target for cotton production this season, aiming to produce 6 million bales.
The local cotton market remained relatively stable over the past week, with prices showing slight variations across regions. In Sindh, cotton prices ranged between Rs. 16,000 to Rs. 16,400 per maund, while cottonseed (phutti) prices rose to Rs. 6,800–7,200 per 40 kg. In Punjab, cotton prices increased to Rs. 16,700–17,200 per maund, with phutti priced at Rs. 6,800–7,600 per 40 kg.
Recent rainfall has provided some benefit to the crop, but further downpours could cause damage if water logging occurs. Currently, cotton trade in Punjab has been disrupted due to ongoing rains. Farmers are facing distress as declining phutti prices squeeze their margins, with many expressing concerns over high input costs and reduced profitability. Despite these challenges, trading volume improved during the week.
The government has withdrawn the Export Facilitation Scheme (EFS) facility for cotton yarn and fabric imports while imposing a 10–18% sales tax on these items. This move aims to create a level playing field for local cotton producers. However, the official notification is still awaited.
In a strongly worded statement, Muhammad Khalid Khokhar, Chairman Kissan Ittehad expressed grave concerns over the dire conditions faced by cotton and wheat growers. He warned, “Wheat and cotton will no longer be cultivated in Pakistan,” highlighting the severe challenges plaguing the agricultural sector.
Khokhar lamented that the new pricing policies have left farmers’ households in mourning, with many struggling to survive. Meanwhile, an agreement has been signed between PCCC and APTMA regarding outstanding cotton payments.
In a significant development, APTMA and PCCC have joined hands to revive the cotton industry, aiming to stabilize the sector and support distressed farmers. The collaboration seeks to address long-standing issues and ensure sustainable growth in cotton production.
The rate of cotton in Sindh is in between Rs 16,000 to Rs 16,400 per maund, while phutti was traded at Rs 6,200 to Rs 7,200 per 40 kg. In Punjab, cotton prices stood at Rs 16,700 to Rs 17,200 per maund, with phutti priced between Rs 6,800 and Rs 7,600 per 40 kg.
Meanwhile, rate of cotton in Balochistan is in between Rs 16,100 to Rs 16,300 per maund, while phutti was sold for Rs 7,000 to Rs 7,200 per 40 kg.
The Spot Rate Committee of the Karachi Cotton Association maintained the spot rate at Rs 16,300 per maund.
Karachi Cotton Brokers Forum Chairman Naseem Usman told that there is a decline in international cotton prices. In New York, the futures price of cotton is currently trading between 66 to 68 cents per pound.
According to the USDA’s weekly export and sales report, 75,100 bales were sold for the 2024-25 season. Vietnam led the purchases with 33,600 bales, followed by Pakistan with 13,000 bales, and India with 9,700 bales.
For the 2025-26 season, 81,500 bales were sold. Bangladesh emerged as the top buyer with 23,100 bales, while Vietnam secured the second position with 19,900 bales. South Korea ranked third with purchases of 16,300 bales.
The All Pakistan Textile Mills Association (APTMA), Ministry of National Food Security and Research (MNFSR), and Pakistan Central Cotton Committee (PCCC) have officially joined hands in a landmark agreement to resolve the long-standing cotton cess collection issue and lay the foundation for the revival of Pakistan’s vital cotton sector.
The signing ceremony was held at the MNFSR headquarters in Islamabad and witnessed by Federal Minister for National Food Security and Research Rana Tanveer Hussain, Secretary MNFSR Waseem Ajmal Chaudhary, Chairman APTMA Kamran Arshad, Chairman APTMA North Asad Shafi, Secretary General APTMA Shahid Sattar, APTMA Cotton Advisor Dr Javed Hassan, Cotton Commissioner & CEO PCCC Dr Khadim Hussain, and Secretary PCCC Dr Peer Adrees.
Federal Minister Rana Tanveer Hussain lauded APTMA’s constructive role in resolving this critical issue, emphasizing that cotton remains the lifeblood of Pakistan’s textile industry and recognizing APTMA as its foremost stakeholder. The Minister expressed his full support for APTMA’s vision, committing to place APTMA in the driving seat to lead the reform and revival of the Pakistan Central Cotton Committee. He also welcomed further engagement and collaboration, including a forthcoming visit to APTMA House Lahore.
Chairman APTMA, Kamran Arshad, thanked the Minister for his proactive and collaborative approach, particularly in facilitating key policy measures such as easing cotton seed imports and addressing other issues in the cotton seed sector. Highlighting the severe cotton shortages in recent years that have adversely impacted the entire textile value chain, and the livelihoods of millions of cotton growers, he stressed that Pakistan has been compelled to import billions of dollars’ worth of cotton from global suppliers including the US, Brazil, and Australia. Arshad reaffirmed APTMA’s dedication to overcoming these challenges and hailed the agreement as a historic milestone that fulfills APTMA’s promise to resolve the cess deadlock.
Secretary PCCC Dr Peer Adrees noted the positive impact of APTMA’s support, which has enabled PCCC to pay full salaries and pensions to its staff in recent months.
Chairman APTMA North, Asad Shafi, echoed the critical importance of cotton to Pakistan’s textile sector and emphasized APTMA’s ongoing efforts to enhance value addition through promoting use of local cotton and inputs, development of domestic brands and internationally competitive products.
Looking ahead, Kamran Arshad urged swift implementation of the PCCC restructuring to transform it into a modern, productive research institution that will spearhead innovation and productivity gains in cotton cultivation. He also called for an all-stakeholders conference, including farmers, ginners, and industry representatives, to collaboratively chart a sustainable path for Pakistan’s cotton revival.
APTMA remains steadfast in its commitment to support the resurgence of Pakistan’s cotton crop, enabling the country to reclaim its position as a top global cotton producer. This revival is critical not only for safeguarding millions of jobs across the textile value chain but also for boosting textile exports and expanding domestic value addition— key drivers for Pakistan’s economic growth and competitiveness in international markets.
Despite a significant decline in Pakistan’s cotton production, some stakeholders are once again recommending the cultivation of hybrid cotton, even though previous trials conducted twice ended in complete failure. Reports indicate that around 150 acres of hybrid cotton have already been planted in Punjab and Sindh shortly after the federal government allowed the import of cotton seeds. Surprisingly, the Pakistan Central Cotton Committee (PCCC), which must legally be consulted before any such cultivation, remains entirely unaware of these trials.
Ehsan-ul-Haq, Chairman of the Cotton Ginners Forum, highlighted that Pakistan’s cotton production has plummeted from a record 15 million bales to just 5.5 million bales due to extreme weather conditions, unfavorable government policies, and the unchecked expansion of sugarcane cultivation in cotton zones. He noted that instead of enforcing crop zoning laws, reducing agricultural input costs, and cutting the record 86% sales tax on the cotton ginning industry, authorities are focusing on importing hybrid cotton seeds under pressure from certain stakeholders.
Haq recalled that in 2010, two global seed giants, Monsanto and Syngenta, conducted hybrid cotton trials in Pakistan in consultation with the PCCC, which failed completely, yielding 60% less per acre compared to traditional Pakistani varieties. Despite this, efforts are now being made to reintroduce hybrid cotton cultivation without proper evaluation or consultation with the PCCC, raising serious concerns about its potential impact on the already struggling cotton sector.
The heads of Pakistan’s two major agricultural institutions informed the Cotton Ginners Forum that despite multiple trials of hybrid cotton cultivation in various cities of Punjab and Sindh after 2010, all attempts failed completely. The primary reason was the incompatibility of these seeds with the local climatic conditions.
They further revealed that over the past four to five years, experiments have been conducted in Pakistan with single-gene, double-gene, and triple-gene cotton seeds.
Surprisingly, while double-gene varieties were expected to yield double the production of single-gene cotton and triple-gene varieties even more, the actual output of both remained lower than that of single-gene cotton. This has raised concerns that hybrid cotton cultivation in Pakistan does not appear to be succeeding, as most cotton-growing zones in the country are experiencing significantly higher temperatures compared to 2010.
The officials added that they repeatedly contacted the company promoting hybrid cotton cultivation, asking them to share their trial data. However, they have yet to be granted access to this information.
Copyright Business Recorder, 2025
