Cotton ginning units plunge from 1,200 to 400

Minister for commerce pledges revival of cotton industry

ISLAMABAD:

Federal Commerce Minister Jam Kamal Khan has expressed concern over a steep decline in the number of ginning companies, which has dropped from 1,200 to just 400, causing significant disruption in the cotton supply chain and underutilisation of electricity resources.

The federal minister met representatives of Pakistan Cotton Ginners Association, led by its Chairman, Dr Jassu Mal, to address challenges facing the cotton industry.

He highlighted the alarming decline in the number of ginning factories from 1,200 to just 400, leading to underutilisation of electricity and disruption in the cotton supply chain. He emphasised that cotton was not merely a commodity but a livelihood, with millions of people in Pakistan depending on its growth, harvesting and processing.

Once a global leader in cotton production and exports, Pakistan now faces the harsh reality of importing raw cotton due to a lack of attention and resources in the sector.

Khan acknowledged the heavy taxation across the cotton production cycle – from pesticides to ginning and oil extraction – that made it difficult to compete with other crops. He informed the stakeholders that the government was treating the issue with urgency, especially considering the annual expenditure of approximately $3 to $4 billion on cotton imports, which could be reduced by boosting domestic production.

Proposing a series of seminars and workshops, the minister expressed the government's commitment to collaborating with industry stakeholders to formulate a comprehensive action plan.

He also encouraged the association to submit proposals for funding through the Export Development Fund (EDF) to help reinvigorate the sector and boost exports.