KARACHI: The decline in cotton prices continues to persist, with the spot rate experiencing a further drop of 300 rupees. Business activities are increasingly constrained, and the crisis in the textile sector is deepening.
Experts are calling for the provision of the Export Finance Scheme (EFS) facility at the local level and a reduction in energy prices. Similarly, there is a strong emphasis on discontinuing the EFS facility for imported yarn and fabrics.
Head Transfer of Technology Central Cotton Research Institute Multan Sajid Mahmood said that the benefits of stabilising and activating the Pakistan Central Cotton Committee (PCCC) have not been fully realised. Experts argue that without a robust and organised research framework, it is impossible to achieve the desired improvements in cotton production and quality.
Chairman of the Pakistan Cotton Brokers Association, Major Kashif Islam (retd) said that the Committee for Increasing Cotton Crop Production (CCCPE) has stressed the need for concrete measures to address the declining cotton production in the country. The committee asserts that immediate actions are essential to improve cotton yields.
Meanwhile, the forced dismissal of agricultural scientists from the Pakistan Central Cotton Committee is being described as a suicidal blow to the national economy.
Last week, the local cotton market continued to experience a decline in cotton prices. The Spot Rate Committee of the Karachi Cotton Association reduced the spot rate by 300 rupees per maund, closing the spot rate at 17,000 rupees per maund.
New York cotton futures saw a significant increase, while local spinners are already inclined towards imported cotton. A few mills are purchasing local cotton, mostly on credit. Ginners are facing difficulties as they have stocks of cotton lying idle.
All Pakistan Textile Mills Association (APTMA) has been persistently demanding the government regarding the Export Finance Scheme (EFS). Due to the EFS facility, a large quantity of cotton yarn and fabric is being imported, severely impacting the local industry. There are now speculations within certain circles that the government is deliberately targeting the textile industry for elimination.
According to received information, the government is reconsidering the issue of EFS for the textile sector.
On the other hand, textile spinners are increasingly relying on imported cotton, which is severely impacting the ginning industry.
The government has formed a dedicated committee for the revival of cotton, which includes experts from the textile and ginning industries. If the committee develops a proper strategy and formulates policies effectively, and if these are implemented, it will certainly bring benefits. The committee’s first meeting was held on Tuesday, during which recommendations for the revival of cotton were presented.
On the other hand, deals for the new season’s cotton seed (Phutti) are being made at prices ranging from 8000 to 8400 rupees per 40 kg. According to current information, deals for approximately 20 trucks have already been completed.
In Sindh province, the price of cotton is ranging from Rs 15500 to Rs 17000 per maund based on quality and payment conditions, while in Punjab province, it is ranging from Rs 16000 to Rs 17200 per maund.
The Spot Rate Committee of the Karachi Cotton Association reduced the spot rate by 300 rupees, closing it at 17000 rupees per maund.
Naseem Usman, Chairman of the Karachi Cotton Brokers Forum, stated that the decline in international cotton prices continues. The futures price of New York cotton has risen to 66.50 to 67.50 American cents per pound. According to the USDA’s weekly production and sales report, 271,800 bales were sold for the year 2024-25.
Vietnam remained at the top by purchasing 112,700 bales. Turkey ranked second with the purchase of 89,300 bales, while Pakistan secured the third position by buying 42,700 bales.
For the year 2025-26, 110,200 bales were sold. Pakistan led the purchases with 62,400 bales, followed by Honduras in second place with 20,800 bales, and Turkey in third place with 20,000 bales.
Committee on Cotton Crop Production Enhancement (CCCPE) on Tuesday called for concrete measures for enhancement of declining cotton production in the country, which has witnessed a 34 percent decline in the current year compared to last year.
Federal Minister for National Food Security and Research (MNFS&R) Rana Tanveer Hussain, while chairing the first meeting of the CCCPE formed following the directives of Prime Minister Shehbaz Sharif, assured all the participants that their feedback would be incorporated into the final report.
He said that the committee’s main goal is the effective implementation of strategies to increase cotton production.
A senior official of MNFS&R said that Chairman of the National Assembly Standing Committee on National Food Security Research Syed Hussain Tariq, Federal Secretary Waseem Ajmal Chaudhry, along with all relevant stakeholders attended the meeting. He said that the main focus of the meeting was on the immediate steps for increasing cotton production, as Pakistan’s cotton production decreased significantly.
The meeting involved extensive discussions, with stakeholders providing valuable insights and recommendations, he said.
Dr Yousuf Zafar, vice president of the Pakistan Central Cotton Committee (PCCC), briefed attendees on the current status of cotton production in the country.
Several pressing issues were raised during the discussions, including the lack of high-quality seeds, improper zoning of cotton-growing areas, insufficient research on genetically modified (GMO) seeds, and challenges posed by discriminatory tax policies.
Additionally, participants stressed the importance of raising awareness about cotton cultivation and addressing undocumented production. One of the key recommendations was to promote crops that enable early sowing of cotton, with onions and mustard suggested as viable options.
The meeting concluded with a unified call for concerted efforts to revitalise Pakistan’s cotton industry and ensure its long-term sustainability.
To tackle the crisis, the 15-member committee has been tasked with devising recommendations for revitalising cotton production. They have been given a 30-day deadline to assess the situation and propose policy and administrative measures to support the sector.
Additionally, the committee will explore strategies for improving the grading and standardisation of cotton bales to meet international contamination parameters.
The committee includes representatives from the textile sector, agriculture departments, academia, and experienced cotton growers from Sindh, Punjab, and Balochistan.
Sajid Mahmood, head of the Technology Transfer Department at the Central Cotton Research Institute, Multan, in a telephonic discussion with cotton analyst Naseem Usman, underscored the need for a comprehensive and strategic approach to reviving cotton production in Pakistan. He emphasised that the ongoing cotton crisis cannot be attributed solely to seed quality; rather, it is a complex interplay of agricultural, commercial, and policy-related challenges.
A myopic focus on seed improvement while ignoring other critical factors will render all revival efforts superficial and ineffective.
Highlighting the current research landscape, Sajid Mahmood noted that over 22 public and private institutions are actively engaged in cotton research and development, with provincial departments investing billions of rupees from agricultural budgets. Moreover, private seed companies are making significant investments in research and development (R&D).
Despite these extensive efforts, cotton production continues to decline, signalling deep-rooted structural flaws in policy formulation, research frameworks, and implementation strategies. He stressed the urgency of moving beyond past mistakes and adopting an integrated, science-driven, and pragmatic approach, treating cotton production as a holistic agricultural system rather than an isolated issue.
A key obstacle to achieving meaningful progress, he noted, is the lack of coordination in research efforts. Without strengthening and operationalising the Pakistan Central Cotton Committee (PCCC) at the federal level, research initiatives will remain fragmented, and the desired improvements in cotton yield and quality will remain elusive. A well-structured, cohesive, and results-oriented research framework is imperative for sustainable growth in the cotton sector.
Sajid Mahmood further asserted that Pakistan must move beyond conventional, fragmented policymaking and embrace a comprehensive, research-backed, and technology-driven strategy to revitalise its cotton industry. To this end, he emphasised the importance of studying and adapting successful international models, particularly those implemented by Brazil, China, and the United States. These nations have significantly enhanced their cotton production by leveraging cutting-edge research, advanced biotechnology, and robust policy support.
Pakistan must analyse their scientific methodologies, government-backed initiatives, and modern agricultural practices, customising them to local conditions to ensure long-term, sustainable improvements in cotton productivity and global competitiveness.
Chairman of the Pakistan Cotton Brokers Association, Major Kashif Islam (retd), has expressed grave concern over the forced dismissal of 50% of the agricultural scientists and staff of the Pakistan Central Cotton Committee (PCCC).
He described this decision as a severe blow to the national economy, contradicting the government’s stated commitment to reviving the cotton sector. He emphasised that while the government claims to prioritise cotton restoration, the abrupt termination of experts from the country’s premier cotton research institution undermines these efforts and reflects a lack of strategic foresight. This move, he warned, would paralyse cotton research and development, exacerbating economic instability.
He highlighted that during a meeting of the Ministry of National Food Security & Research on March 11, it was decided to terminate 50% of PCCC’s agricultural scientists and staff, with April 30 set as the deadline for implementation.
He cautioned that this decision appears to be part of a broader agenda aimed at derailing the government’s cotton revival initiatives and weakening agricultural research. If implemented, Pakistan’s dependence on foreign sources for agricultural advancements will increase, further impeding sustainable growth in the sector.
He pointed out that PCCC is already operating with less than half of its sanctioned workforce, and any further reductions would be catastrophic for the country’s cotton industry.
He underscored the critical role of PCCC in spearheading cotton research, developing high-yield seed varieties, and providing essential support to the textile sector. Any deliberate weakening of this institution, he warned, would directly impact Pakistan’s textile exports, currently valued at $16-17 billion annually, potentially reducing them to $10 billion within five years.
The Pakistan Cotton Brokers Association has called upon the federal government to immediately revoke this ill-conceived decision and initiate strict action against those responsible for this detrimental policy.
Additionally, the government has been urged to safeguard PCCC’s scientific and technical workforce, strengthen agricultural research institutions, enhance research funding, and ensure the timely disbursement of salaries and operational budgets. These measures, he stressed, are crucial for the successful execution of national cotton revival programs.
Kashif Islam warned that the forced dismissal of highly qualified agricultural scientists and researchers from PCCC poses a significant threat not only to the national economy but also to the long-term sustainability of the cotton and textile industry. If the decision is not reversed, its adverse consequences will be far-reaching and irreparable.
Copyright Business Recorder, 2025
