For the first time in history, nearly 50% of Punjab ginning factories have halted operations due to massive piles of unsold cotton, triggering a sharp decline in cotton prices across the country. The crisis has raised alarm over the survival of Pakistan’s cotton industry, with experts warning that upcoming rains in Punjab and Sindh may further reduce crop quality and intensify the situation.
Ehsan-ul-Haq, Chairman of the Cotton Ginners Forum, revealed that deteriorating cotton quality has drastically lowered market demand, leaving ginning units burdened with huge unsold stocks. Many factory owners are now struggling with liquidity shortages, forcing them to shut down production.
He also pointed out that the strengthening of the Pakistani rupee against the US dollar has worsened the crisis by driving cotton prices down by Rs. 200 per maund in just one week, bringing rates to Rs. 16,300 per maund.
Industry insiders fear that further rainfall could damage standing crops, making the cotton harvest less valuable and more difficult to sell. This double pressure of low demand and falling prices has created deep uncertainty in the cotton sector.
Meanwhile, the Pakistan Cotton Ginners Association (PCGA) announced that it would publish the latest national cotton production data by August 15, but major discrepancies in reported figures have already caused serious concern among stakeholders.
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According to PCGA’s report, Punjab’s ginning factories received only 301,000 bales of cotton by July 31. However, the Crop Reporting Center Punjab recorded 609,000 bales during the same period—more than double the PCGA’s estimate.
This wide gap in numbers has left cotton traders and ginners confused, making it nearly impossible to set clear strategies for the coming season.
As uncertainty grows, the shutdown of Punjab ginning factories is becoming a defining challenge for the cotton industry, one that may decide its future survival.
