When a farmer plants cotton seeds in his field, it is not merely the cultivation of a crop; it is the sowing of economic potential into the soil. Cotton is not just a plant; it is the backbone of Pakistan’s economy, textile industry and rural employment.

Yet, the farmer’s decision to grow cotton depends less on the seed itself and more on his confidence in government policies, the transparency of market systems and the fairness of price determination. If policies are farmer-friendly, markets transparent and returns equitable, the farmer prioritizes cotton. But when ambiguity in policies, dominance of middlemen and non-quality-based pricing prevail, his motivation fades. This is the core issue that has pushed Pakistan’s cotton to the brink of decline.

For decades, Pakistan’s ginning system has failed to modernize. The market structure remains dominated by brokers and commission agents and cotton prices are determined solely by weight.

As a result, both high-quality and low-quality cotton are sold at the same rate, discouraging quality improvement. By contrast, in the sugarcane sector, prices are determined based on sugar recovery ratios rewarding better quality. If a similar premium-based system had existed for cotton, farmers would have been encouraged to adopt superior seeds and modern technology. Unfortunately, the absence of any reward for quality has weakened farmers’ motivation and reduced their interest in cotton cultivation.

These policy and market deficiencies are key to understanding the broader crisis of Pakistan’s textile industry. While the industry contributes the largest share to exports and provides employment to millions, it has long neglected its foundation the cotton grower. The textile sector has focused on energy tariffs, tax rebates and export incentives but has paid little attention to farmers’ challenges, improvement of ginning technology and enhancement of cotton quality.

Bangladesh presents a contrasting example. Despite producing no cotton domestically, it imports around 8 million bales annually and has achieved textile exports worth USD 50 billion.

Pakistan by contrast, even when producing 14 million bales, has struggled to surpass USD 16–20 billion in exports. This shows that the issue lies not with the farmer or the seed but with the policy framework, market structure and industrial priorities.

Since 2016, another major setback emerged when a majority of textile mills stopped paying the mandatory Cotton Cess Rs. 50 per bale on both local and imported cotton. This fund was the backbone of research for new varieties, pest resistance and quality improvement. The government sought to address this crisis.

Through the intervention of the National Assembly and Senate Standing Committees, an agreement was finally reached on July 9, 2025 between PCCC and APTMA. Some progress has been made but certain issues such as justification for variations in cotton bale weights still need resolution to ensure the full implementation of the agreement.

In January 2025, the government took another significant step by announcing the merger of PCCC with the Pakistan Agricultural Research Council (PARC) to strengthen cotton research under an integrated institutional framework. This visionary decision is expected to provide research with long-term stability and transparent funding.

The cotton value chain extends from farm to fashion involving farmers, brokers, the Karachi Cotton Association, ginners, weavers, garment manufacturers and other stakeholders.

Recently, new and influential industrial groups such as the Pakistan Textile Council, Bedwear, Towel and Undergarments Associations have also emerged. Therefore, inclusive participation of all stakeholders in policymaking is essential for the revival of cotton.
It is time to adopt a sustainable, integrated and science-based strategy for Pakistan’s cotton sector. The foremost requirement is to determine cotton prices based on quality to encourage better yield and premium-grade production.

When high and low-quality cotton are sold at the same rate, farmers lose the incentive to invest in superior seeds, fertilizers and modern farming techniques. A quality-based pricing system would automatically motivate farmers to enhance productivity and quality leading to an overall improvement in both.

In this regard, introducing a premium rate system for high-quality cotton can play a pivotal role. In developed agricultural economies, such systems reward top-grade produce fostering healthy competition and quality enhancement. If Pakistan introduces such a system, farmers will adopt improved varieties, use disease-free seeds and align their produce with international standards.

Similarly, reducing the role of middlemen and enabling farmers to access markets directly is the need of the hour. In the current setup, much of the farmer’s earnings are consumed by commission agents. If farmers are linked directly with ginning factories or textile mills, they can earn a fair profit for their hard work promoting prosperity in rural economies and restoring agricultural confidence.

Additionally, imposing reasonable duties on imported cotton is vital to protect local production. Imported cotton creates pressure in the domestic market reducing prices for local farmers. Implementing appropriate tariffs would safeguard domestic producers, encourage local cultivation and save valuable foreign exchange.

Ensuring transparent collection and timely disbursement of the Cotton Cess is equally crucial for sustaining research and development. This fund is the lifeline of research institutions. Once it reaches scientists and research bodies without disruption, it will enable the development of new varieties, pest-resistant seeds and advanced technologies. Consistent research is the only force that can once again make cotton the foundation of Pakistan’s national economy.

Finally, modernizing the ginning system is an urgent necessity. Outdated and low-efficiency ginning units continue to compromise fiber quality. The adoption of modern machinery will improve fiber length, strength and cleanliness, restoring the global credibility of Pakistani cotton and providing the textile export industry with superior raw material.

Effective implementation of all these measures will not only enhance cotton production and quality but also ensure fair returns for farmers, supply better raw material to industry, strengthen research and rebuild the national economy on the solid foundation of cotton. This is the path that can lead Pakistan toward sustainable growth, agricultural stability and industrial self-reliance.