Pakistan may have to import 7.2 million bales of cotton next year

Referring to the latest USDA report, Cotton Ginners Forum Chairman Ehsan ul Haq said that in the upcoming Cotton Year 2026-27, cotton production in Pakistan is likely to decrease by 272,000 bales compared to the previous year to 694,000 bales. On the other hand, local consumption is estimated at 141,000 bales. To meet this gap, about 72 million bales may have to be imported, which will put a heavy burden on the country’s foreign exchange.

At the global level, China will produce the highest with 45.6 million bales. India is estimated to produce 32.6 million, Brazil 23.8 million and America 18 million bales. Pakistan is far behind all of them.

Regarding the situation in the country, Ehsan ul Haq said that currently 6 Ginning Factories are operational in Punjab and there are reports of 2 more starting in Sindh before Eid-ul-Adha. The prices of cotton are stable at Rs. 11,500 per 40 kg and cotton at Rs. 22,500 per maund. The real direction of prices will be clear after Eid.

A major problem also emerged that 84 percent Sales Tax is imposed on the Cotton Ginning Sector, which is much higher than any standard. As a result, many Ginners and Oil Mills owners are preferring undocumented business, which is also causing loss to the national exchequer and the cotton production figures are also becoming controversial. Ehsan ul Haq demanded that the government include the proposals of the Pakistan Cotton Ginners Association in the federal budget.