Pakistan is witnessing a partial initiation of a new cotton ginning season, with one ginning unit becoming operational in both Sindh and Punjab. The state is likely to witness the commencing of more units in the coming days.
Partial cotton picking has started in some coastal areas of Sindh and southern Punjab, as per reports. There is a gradual increase in the arrival of raw cotton in the market, though the volume remains significantly lower compared to the same period last year. Currently, one ginning unit is operational in Hyderabad and another in Burewala, Punjab.
Cotton picking is gaining traction in lower Sindh, with rates ranging between Rs 9,500 and Rs 10,700 per 40 kg. However, high temperatures are hindering efforts to sow cotton, and textile mills have blocked payments worth billions of rupees, citing a financial crisis in the sector.
A recent meeting between the Pakistan Cotton Ginners Association (PCGA) and the All-Pakistan Textile Mills Association (APTMA) was limited to exchanging suggestions for improving the current situation. Abid Zaidi, a cotton expert, criticised the APTMA leadership for their lack of seriousness. He noted that ginners complained about textile mills importing cotton at higher prices while refusing to pay better rates for premium quality local lint. Zaidi also highlighted that up to 8 per cent of non-lint content in local cotton is accepted, a practice not seen in other countries, and urged textile mills to enhance the quality of lint.
The Karachi Cotton Association’s spot rate committee maintained the spot rate at Rs 19,700 per bale. Naseem Usman, Chairman, Karachi Cotton Brokers Forum, noted a rising trend in international cotton rates, with New York market futures trading at 80.52 cents per pound.
Ihsanul Haq, Chairman, Cotton Ginners Forum, states, adverse weather conditions have impacted cotton cultivation this season. Early sowing was disrupted by severe cold in February and March in coastal Sindh, while high temperatures are currently affecting crop growth in major cotton zones of Punjab and Sindh, including Rahim Yar Khan, Bahawalpur, Bahawalnagar, Dera Ghazi Khan, Rajanpur, Multan, Sahiwal, Ghotki, Sukkur, Khairpur Mirs, and Nawabshah districts.
Haq also mentioned that the Punjab government recently announced plans to build a 1,000-acre garment city near Lahore, aimed at providing facilities for local and foreign investors to establish new textile mills. He suggested that instead of this initiative, the government should allocate funds to reactivate the 50 to 60 per cent of textile mills in the province that are currently inactive due to various reasons.
