High cotton imports set off alarm bells

Despite the onset of the new cotton ginning season in mid-May, the duty-free import of cotton and cotton yarn has continued unabated, setting off alarm bells across the domestic industry.

The unchecked imports have caused widespread concern among farmers, ginners and industrialists, who fear that the entire cotton industry, including the ginning factories, is headed towards an unprecedented crisis.

According to industry estimates, during cotton season 2025-26, the ginning and textile sectors may run at less than 50% of their production capacity. This slowdown is not only expected to impact employment and production but also result in a surge in imports of cotton and edible oil worth billions of dollars.

Cotton Ginners Forum Chairman Ihsanul Haq told The Express Tribune that three ginning factories had started functioning in Khanewal and Burewala in Punjab while reports suggested that one or two units would be operational in Tando Adam in Sindh on May 25. Initially, new cotton deals are being settled at Rs17,000 to Rs17,500 per maund while phutti sales are taking place in the range of Rs8,300 and Rs8,500.

In a policy shift, he said, the government has permitted the import of cottonseed for the first time in nearly 50 years. Even before the approval, some high-ranking officials and private seed companies imported cottonseed from China, Australia, the US and Brazil for trial cultivation in various parts of Pakistan.