{"id":407101,"date":"2026-02-04T09:22:15","date_gmt":"2026-02-04T09:22:15","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/407101\/"},"modified":"2026-02-04T09:22:15","modified_gmt":"2026-02-04T09:22:15","slug":"us-eu-tariff-cuts-for-india-hit-pakistans-cotton-sector","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/407101\/","title":{"rendered":"US, EU tariff cuts for India hit Pakistan\u2019s cotton sector"},"content":{"rendered":"<p>Cotton arrivals inch up by 0.62% as industry warns of export losses without urgent govt action<\/p>\n<p>                                        KARACHI: <\/p>\n<p>Pakistan\u2019s cotton industry is in a quandary after the United States unexpectedly <a rel=\"nofollow noopener\" href=\"https:\/\/tribune.com.pk\/story\/2590524\/deal-sealed-as-trump-cuts-india-tariffs-to-18\" target=\"_blank\">reduced tariffs<\/a> on Indian goods. This follows the European Union\u2019s decision to grant almost duty-free access to Indian exports, <a rel=\"nofollow noopener\" href=\"https:\/\/tribune.com.pk\/story\/2590332\/as-eu-and-india-move-closer-where-does-pakistan-stand\" target=\"_blank\">raising concerns<\/a> about a further decline in Pakistan\u2019s exports.<\/p>\n<p>Cotton Ginners Forum\u00a0Chairman\u00a0Ihsanul Haq\u00a0warned that unless the federal and provincial governments take immediate and targeted measures for the cotton and textile sectors, Pakistan would face a sharp decline in <a rel=\"nofollow noopener\" href=\"https:\/\/tribune.com.pk\/story\/2587019\/exports-dip-20-despite-high-inflows\" target=\"_blank\">exports<\/a>. He stressed that delayed policy action would widen the cost gap with regional competitors and weaken Pakistan\u2019s position in global markets.<\/p>\n<p>He said\u00a0according to the latest figures released by the Pakistan Cotton Ginners Association (PCGA) on Tuesday, as of January 31, 2026, cotton arrivals at ginning factories nationwide increased by 0.62% to reach 5.545 million bales. The report stated that during this period, 2.63 million bales arrived at ginning factories in Punjab, while 2.915 million bales reached ginning factories in Sindh and Balochistan, reflecting a decrease of 3% and an increase of 4%, respectively.<\/p>\n<p>During the review period, textile mills purchased 4.987 million bales from ginning factories, while exporters bought 178,000 bales. As a result, ginning factories currently hold saleable stocks of around 380,000 bales. The PCGA data further shows that only 16 ginning factories are operational in Sindh, compared to 84 in Punjab, underscoring the uneven regional impact on the sector.<\/p>\n<p>He added that although the federal government had set a cotton <a rel=\"nofollow noopener\" href=\"https:\/\/tribune.com.pk\/story\/2538118\/cotton-sowing-claims-questioned\" target=\"_blank\">production target <\/a>of 10.2 million bales for the 2025\u201326 cotton year, total national cotton output is now expected to be around 5.6 million bales.<\/p>\n<p>Read More:\u00a0<a rel=\"nofollow noopener\" href=\"https:\/\/tribune.com.pk\/story\/2590442\/1\/\" target=\"_blank\">Trump agrees trade deal with India, slashes reciprocal tariff to 18% after call with Modi<\/a><\/p>\n<p>He said the industry\u2019s anxiety intensified after the European Union reduced its import duty on Indian products to zero, while the United States cut tariffs on Indian exports from 50% to a range of 18%\u201325%. In contrast, Pakistani products still face a 19% tariff in the US market. According to the industry, this disparity shows price competitiveness decisively in favour of India.<\/p>\n<p>\u201cThe entire cotton and textile value chain in Pakistan is under stress,\u201d Haq mentioned expressing serious concern, urging governments to act on industry demands on an emergency basis. He emphasised the need to align Pakistan\u2019s production costs with those of neighbouring countries to ensure export competitiveness on price.<\/p>\n<p>The Cotton Ginners Forum also renewed its demand for immediate release of billions of rupees in pending refunds owed to the textile industry or their adjustment against super tax liabilities, calling the move essential for liquidity and survival.<\/p>\n<p>Referring to the latest report by the International Cotton Advisory Committee (ICAC), Haq said global cotton production in the 2025-26 season is estimated at 26 million tonnes, while consumption is projected at 25.2 million tonnes. The report expects China to remain the world\u2019s largest cotton producer, followed by India and Brazil. China and India will lead global consumption, with Pakistan ranking third.<\/p>\n<p>The ICAC report further projects Brazil, the United States, and Australia as the top cotton exporters, while Bangladesh has emerged as the world\u2019s largest cotton importer, followed by Vietnam and China.<\/p>\n","protected":false},"excerpt":{"rendered":"Cotton arrivals inch up by 0.62% as industry warns of export losses without urgent govt action KARACHI: Pakistan\u2019s&hellip;\n","protected":false},"author":2,"featured_media":407102,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[84,1294,1172,2321,56,54,55],"class_list":{"0":"post-407101","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-latest","11":"tag-pakistan","12":"tag-uk","13":"tag-united-kingdom","14":"tag-unitedkingdom"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/407101","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=407101"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/407101\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/407102"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=407101"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=407101"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=407101"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}