LAHORE: Cotton arrivals at ginning factories rose 7.53% year-on-year to 4,081,265 bales by October 15, but the cotton and textile industries are in a deepening crisis, Dawn reported.
Key points
- Arrivals stood at 3,795,637 bales on the same date last year
- Aptma says around 500 ginneries, over 150 textile mills and nearly half of power looms are idle
- Industry blames rising costs and alleged misuse of the Export Facilitation Scheme
Provincial picture
According to the Pakistan Cotton Ginners Association (PCGA), Punjab's arrivals rose 7.79% to 1.64 million bales and Sindh's climbed 7.35% to 2.44 million bales. Bahawalnagar led in Punjab and Sanghar in Sindh.
A total of 471 ginneries were operating. Textile mills bought about 3.45 million bales and exporters 97,000 bales, leaving 531,530 bales unsold.
What is driving the crisis
Cotton Ginners Forum chairman Ihsanul Haq alleged that yarn and fabric imported under the Export Facilitation Scheme (EFS) for re-export are being sold in the local market, where domestic producers pay 18% sales tax.
Aptma data showed man-made yarn imports rising from 3,056 tonnes to 12,773 tonnes in the first quarter of FY2026-27 compared with a year earlier, while man-made fabric imports jumped from 660 tonnes to 8,628 tonnes. Aptma welcomed Customs action and called for curbs on such imports under the scheme.
Warning for growers
Sajid Mahmood of the Central Cotton Research Institute in Multan said cotton's revival should be measured by farmers' net income per acre rather than arrival volumes, warning that growers may cut acreage next season if returns stay below competing crops. Haq also warned that bad weather could leave output below initial estimates.
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