Pakistan Becomes Top Buyer of US Cotton Amid Local Shortage

Cotton Prices Rise as Demand Outstrips Supply

Due to a shortage of quality cotton in Pakistan, the country has become the largest importer of American cotton. This has caused cotton prices to rise, as local cotton ginners compete to buy available supplies.

According to Ehsan-ul-Haq, Chairman of the Cotton Ginners Forum, Pakistan imported 72,200 bales of cotton from the US during the week ending October 31. In comparison, Vietnam bought 71,800 bales, and China only 37,500 bales.

Experts believe that Pakistan may import up to 6 million bales of cotton during the 2024-25 season to meet local needs, costing over $2 billion.

Ehsan-ul-Haq also mentioned that lower interest rates and cheaper electricity could lead to more exports of cotton products from Pakistan. Last week, cotton seed (phutti) prices rose by Rs. 200-300 per 40 kg, reaching Rs. 8,600 to Rs. 8,800, while cotton prices remained at Rs. 18,100 to Rs. 18,300 per maund.

He also warned that growing sugarcane and mung beans in cotton areas is wasting water and could make the land barren in many places. He urged the government to stop this practice to protect Pakistan’s agriculture.

In response to a crackdown by the Federal Board of Revenue (FBR) on cotton ginners, Ehsan-ul-Haq said that FBR officials met with cotton ginners in Bahawalpur. They agreed that FBR would avoid actions that could harm cotton ginners, but would take action against factories selling unrecorded cotton.

These issues highlight the challenges Pakistan faces in its cotton industry, with rising prices, import reliance, and regulatory concerns.