For the first time in the country’s history, about 50 percent of the ginning factories in the cotton belt of Punjab have become inactive due to non-sale of cotton.
According to Express News, this is the first time in the 78-year history of Pakistan that 50 percent of the factories in the cotton belt of Punjab have closed or become inactive due to non-sale of cotton.
Due to this crisis in the cotton ginning sector, the trend of decreasing cotton prices in the cotton markets of Punjab has continued, while due to the forecast of more rains in Punjab and Sindh this week, cotton harvesting and harvesting have been carried out, while there are concerns that the quality of the cotton bolls will also be further affected.
Chairman Cotton Ginners Forum Ehsan-ul-Haq told Express that due to the rains in most cotton zones of Punjab in the past few years, the quality of the cotton produced has been affected, due to the decrease in its sales, and due to the increase in unsold stocks of cotton in the factories, the cotton ginners have decided not to keep their ginning factories active.
He said that the continuous decline in the value of the dollar against the rupee is also having an impact on cotton prices. Due to these factors, the price of cotton per maund in Pakistan has decreased by Rs. 100 to Rs. 200 to Rs. 16,200 to Rs. 16,300 per maund last week, while there are concerns about further decline in cotton prices this week as well.
He said that the Pakistan Cotton Ginners Association will release the gross national product data up to August 15, 2025 on Monday, which will include details of cotton production, cotton sales to textile mills, cotton exports and saleable stocks.
There is anxiety among cotton stakeholders due to the unusual difference in the data and figures released by the PCGA and the Crop Reporting Center Punjab on cotton production in Punjab this year.
Ehsan-ul-Haq said that according to the PCGA report, 301,000 bales of cotton have been delivered to Punjab’s ginning factories till July 31, while according to the Crop Reporting Center Punjab report, 609,000 bales of cotton have been produced in Punjab till July 31, which is more than 100% compared to the PCGA report, due to which cotton stakeholders may face difficulties in formulating their strategies.