Cotton hit the three-decade lowest level in ginning factories, and subsidy is inevitable for increasing production

Pakistan’s textile industry is concerned about the consistent decline in cotton production in the country and the government’s indecisiveness about the steps to meet local textile businesses’ demand. It first allowed cotton imports from India and later disapproved of the decision on political issues.

Mr. Naseem Usman, Chairman Karachi Cotton Brokers Association, said that 8.7 million bales were produced last year. Current production is down by 3 million bales, the lowest output in the previous 30 years.

Cotton arrivals in ginning factories hit the three-decade lowest level of 5.6 million bales. The industry is concerned about textile production prospects without sufficient raw material and no alternative arrangement by the government, traders said on Saturday. Till April 1, 70,200 bales were exported, while 5.49 million bales were sold to textile mills. Ginners have 85,070 bales in stocks, according to Pakistan Cotton Ginners Association.

Chairman CPEC Authority Asim Saleem Bajwa, Minister for Agriculture Syed Hasnain Jahanian Gardezi, and others participated in the committee’s meeting at Governor House led by Ch Muhammad Sarwar on Saturday. The committee recommended increasing Rs 5,000 per 40kg cotton to provide direct subsidy to cotton farmers.

Governor said that to increase cotton production, all the stakeholders, including those from the textile industry, should be on one page for which the efforts have been initiated. We are utilizing all resources to address the problems of our farmers. China provides research and machinery assistance to increase cotton production, and CPEC Authority is keen on facilitating farmers by assisting in various sectors. Cotton and textiles account for 8pc of Pakistan’s economy, and we must all work together to strengthen Pakistan’s economy, the committee informed.

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