Pakistan’s Cotton Production Declines by 36.84%, Impacting Textile Sector and Exports

Pakistan’s cotton industry faces a significant decline this season, with seed cotton (phutti) arrivals down by 36.84% compared to last year. According to the latest report by the Pakistan Cotton Ginners Association (PCGA) as of October 31, 2024, cotton arrivals reached just over 4.2 million bales (4,291,105) in ginning factories nationwide.

Regional Breakdown:

• Punjab: Cotton arrivals totaled 1,842,257 bales, a 38.53% decrease from the previous season, when arrivals reached nearly 3 million bales (2,996,921).
• Sindh: The province reported 2,448,848 bales, marking a 35.51% drop from last year’s 3,797,085 bales.
• Baluchistan: Arrivals stood at 131,800 bales.

Ginning and Trading Activity

Out of the total arrivals, over 3.7 million bales (3,790,139) have undergone the ginning process, converting seed cotton into usable bales for trade and industry use. Exporters and traders have purchased approximately 31,000 bales, while the textile sector has secured around 3.53 million bales (3,535,733) to meet domestic demand.

However, as of this reporting period, the Trading Corporation of Pakistan (TCP) has not yet begun procuring cotton for the 2024-25 season. Around 724,372 bales remain unsold, creating uncertainty in the market.

Challenges Ahead for the Cotton Industry

Pakistan’s cotton production decline has raised concerns across the sector, especially as the textile industry heavily depends on local cotton. The drop could impact cotton prices, export revenues, and overall production costs. With 560 ginning factories currently operational, industry stakeholders urge support measures to stabilize production and meet growing demand.