Pakistan’s cotton growers and ginners want the five per cent tax to be withdrawn. They say, if the five per cent duty on import of cotton were removed, prices of local cotton would further decline. Cotton growers’ complain that only the proposal for withdrawal of duty on imported cotton is under consideration and not on cotton seed oilcake. The price of cotton oil seed has decreased compared to oilcake, which this is alarming as the oil is supposed to be extracted from cotton oil, which is used in animal feed. The country has to import more edible oil due to this situation.

If cotton is imported at the current duty rate, it is cheaper than local cotton. The duty draw facility is also available to the textile sector on re-export of that commodity.

Due to this situation growers have stopped investing in the cotton crop. Even when there is a shortage of cotton in the country its prices are declining. Cotton growers say when there is a need to support cotton, its prices drop and the price gap between the Pakistan market and the international market widens, as the All Pakistan Textile Mills Association (PTMA) is a single buyer influencing the market