KARACHI – Due to a significant reduction in local cotton production driven by climatic changes, Pakistan has emerged as the largest global buyer of American cotton. This shift is largely attributed to widespread damage to cotton crops caused by severe weather conditions and a decrease in domestic production quality.
According to Ehsan-ul-Haq, Chairman of the Cotton Ginners Forum, the previous year saw a record drop in cotton prices, which led to a reduction in cotton cultivation this year. Compounding the issue, unprecedented rainfall has caused severe damage to the cotton crop, resulting in a notable decline in both quantity and quality of domestic cotton.
Ehsan-ul-Haq highlighted that, based on recent reports, Pakistan has become the largest importer of American cotton over the past three weeks. The country has entered into import agreements for over 1.5 million bales of cotton from the United States, Tanzania, Brazil, and Afghanistan.
A significant discrepancy in cotton production statistics between the public and private sectors in Punjab’s cotton belt has raised concerns among stakeholders. The latest data from the Pakistan Cotton Ginners Association (PCGA) reveals a 60% decrease in cotton bales processed by ginning factories as of August 31, amounting to a total of 1.226 million bales.
The report indicates that ginning factories in Punjab have processed cotton equivalent to 453,000 bales, while those in Sindh have processed 773,000 bales. These figures represent a 58% and 61% decline, respectively, compared to the same period last year.
Currently, only 272 ginning factories are operational, and textile mills have purchased 1.226 million bales of cotton, leaving a mere 54,000 bales available for sale in ginning factories.
The PCGA report shows that, as of August 31, Punjab’s cotton production stands at 453,000 bales, while the Crop Reporting Centre Punjab estimates production at 759,000 bales—a surprising 67% higher than PCGA’s figures.
Ehsan-ul-Haq also noted concerns regarding unofficial sales of cotton in certain areas, which may have contributed to the reported decrease in production figures. He pointed out that cotton prices had recently risen by 1,000 rupees per maund to 19,500 rupees in Punjab and 19,200 rupees in Sindh. However, despite a holiday on Sunday, prices unexpectedly fell by 1,200 rupees per maund, bringing the price down to 18,300 rupees in Punjab and 18,000 rupees in Sindh, causing distress among cotton ginners and growers.
The situation highlights the growing challenges faced by Pakistan’s cotton industry and underscores the need for effective measures to address the ongoing production and pricing issues.
