The unfavourable cotton import policy has added to the problems of farmers and ginners in Pakistan, who have already been in a severe crisis amid lower production.
This has also affected the agriculture sector and put pressure on the foreign exchange, thus hurting the ailing economy of Pakistan further.
In 2024-25, the total cotton output was 5.5 million bales, which was 50 percent lower than the target and 34 percent less than the previous year’s production.
The average productivity per hectares has reduced from 802 kg in 2015 to 475 kg in 2025.
The output slump is likely to have serious implications for farmers and people employed in textile production and exports.
While climate change is often blamed for lower productivity, the unfit government policies, substandard seed varieties and crop inputs have contributed significantly to the problem as well.
Following the forecast of lower production this season, the duty-free imports were allowed.
This left the domestic farmers in the lurch as it caused the local prices to drop significantly.
The Federal Government ignored the concerns of the local cotton growers when it allowed duty-free imports of 3.5 million bales of cotton within a few days.
This volume may reach six million bales this agricultural season.
The decision has ended up hurting the vulnerable farmers, especially when Pakistan’s Central Cotton Research Institute (CCRI) had acknowledged the reduction in profitability of cotton farmers.
Cotton growers were struggling to get fair remuneration when the production costs were rising, said Dr Waqar Ahmad, former Associate Professor at the Faisalabad-based University of Agriculture.
“The government is neither in a position to guarantee higher market prices for cotton nor can it lower input costs for cotton to improve farmers’ profitability,” he said.
Ahmed also expressed concern over the government’s decision to allow duty-free imports when the local cotton growers and ginners were still subjected to an 18 percent sales tax.
This has discouraged the local producer and competitiveness of the domestic cotton, said Dr Yusuf Zafar, Vice Chairman of the Pakistan Central Cotton Committee.
Besides environmental problems, the economic challenges due to the flawed government policies have led to the farm crisis, said Waqar Rizvi, Secretary General of the Kisan (Farmer) Board of Pakistan.
“In reality, there is no (government) agriculture policy,” said Rizvi.
“One year, authorities promise the farmers incentives and guaranteed procurement and the next year, it’s totally the opposite.”
The heavy imports of cotton without charging duty have hurt the ginners as well.
The textile sector is a crucial part of the Pakistani economy.
Ihsanul Haq, Chairman of the Cotton Ginners Forum, said the locally procured cotton remained unsold in warehouses and ginning factories after the unrestrained imports were permitted.
The heavy imports and sales tax on domestic cotton have caused over 40 percent of spinning mills to shut down while pushing several ginning factory owners toward bankruptcy.
Haq said this will lead to the collapse of the cotton market, leading to catastrophic consequences for Pakistan’s agricultural and industrial economy.
He demanded that the 18 percent sales tax on domestic cotton be removed while imposing the same tax on imported cotton.
In addition, the government’s failure to ensure the supply of certified seeds has added to the problem.
Expressing concerns over lack of regulations, Sajid Mahmood, Head of Technology Transfer at the CCRI said “These substandard varieties not only hinder production but also elevate the risk of pest and disease infestations.”
A sharp 31 percent decline in cotton production has led the growth rate of Pakistan’s farm sector to decline to 1.1 percent in the second quarter of 2024-25.
It even led to the overall GDP growth to remain low.
Pakistan is expected to foot the bill of USD 5 billion for the cotton imports this year when it has just USD 11 billion in foreign exchange reserves.
As the productivity and production area under cotton is shrinking, the overall production is set to decrease in the coming years.
In such a scenario, not just cotton growers but also the important textile sector and Pakistan’s economy will be impacted and therefore it is the need of hour to step up the efforts.
— The writer is an educator, based in Sindh. (channaassadullah320@gmail.com)
