LAHORE: Despite a sharp decline in the national cotton production during the financial year 2024-25, piling up of lint stocks in ginning factories highlights the need for a strategy to increase cotton consumption.

The crop data released by the Pakistan Cotton Ginners Association (PCGA) the other day, reveals that a total of 5.49 million bales of cotton reached the ginning factories across the country as of January 15, which is a record 34 percent less than the figures for the same period last year.

As per the PCGA, cotton production in Punjab decreased by 35pc and in Sindh 32pc.

The cotton production target for the crop during 2024-25 had been set at 11m bales. However, market watchers expect that the total cotton production may not go beyond 5.6m bales this season.

Ironically, not a single meeting of the Cotton Crop Assessment Committee (CCAC) has been held during the ongoing season to revise the crop production estimates to enable the stakeholders to formulate their strategies accordingly. It is a deviation from the past practice when three to four meetings of the committee used to be held during a season.

Cotton Ginners Forum Chairman Ihsanul Haq points out that despite a 34pc decline in production, cotton stocks available in ginning factories have increased by 11pc compared to the previous year because cotton purchases by textile mills has dropped by a record 34pc as compared to the last year.

The main reason for this, he says, is Export Finance Scheme (EFS) under which the import of cotton and cotton yarn from abroad is exempted from sales tax, while 18pc tax has been imposed on the local lint. Due to this tax, textile millers have imported the highest volume of cotton and yarn from abroad in the country’s history this year, he adds.

He claims that the mills have also started importing a large volumes of cloth under this scheme, which may further affect the sale of local cotton and yarn.

He says that four major districts of Punjab – Pakpattan, Okara, Sargodha and Kasur – have stopped producing cotton. These district had been playing a prominent role in the crop production during the last few years.

“There is zero cotton production [in these districts] there this year, while it is also being feared that more districts will quit cotton sowing in the coming years,” he adds.

Published in Dawn, January 20th, 2025