Cotton ginners blame tariff and import policy for sector frustration

Rising electricity tariffs, higher mark-up rates and concessions given to importers rather than exporters have deepened frustration among cotton stakeholders, the chairman of the Cotton Ginners Forum, Ehsanul Haq, said in a statement reported by Express News.

Haq said the incentives announced so far are going to importers, and that crop zoning rules are not being enforced. He contrasted Pakistan's position with India, which he said has extended duty-free imports of raw cotton by a further two months to Dec 31 to support its own textile exports, ahead of free trade activity with European Union member states from 2027.

China has also begun buying American cotton in large volumes, he said. Buyers from several countries contracted 216,500 bales in a week, with China leading at 52,100 bales.

Haq said the federal and provincial governments are preparing a few measures to revive the crop, including setting up a cotton board under the All Pakistan Textile Mills Association and removing obstacles to cotton seed imports. He said no action is visible on what he called the main causes of the crop's decline: sugarcane cultivation inside cotton zones and the absence of any restriction on new sugar mills there.

The National Tariff Commission, he said, has upheld five major complaints from textile mills about alleged below-cost imports of millions of metres of fabric and lakhs of tonnes of yarn from China, decided to investigate, and asked affected mills to file their complaints with it.

Domestic cotton prices fell by Rs100 to Rs200 per maund last week, Haq said, citing limited availability of quality cotton, rising production costs, weaker international prices and the Gulf war. He said a clear trend will emerge after fresh production figures are released on Nov 3.

Imports of 10 lakh to 12 lakh bales of Afghan cotton have been suspended for a year because of strained Pakistan-Afghanistan relations and closed borders, he said. Reports suggest Afghanistan is now exporting cotton to Turkey by rail, with an initial consignment of 600 tonnes dispatched.

Separately, Punjab Additional Chief Secretary Iftikhar Ali Sahu visited the Gujranwala commissioner's office and chaired a meeting of divisional and district officers on implementing government measures and ensuring public relief, UrduPoint reported. The outlet's report carried no further details.