Ginner profitability in Pakistan has been under significant pressure due to the recent increase in seed cotton prices. Currently, in Punjab, seed cotton prices are ranging between PKR 7,200–7,400 per 40 kg, while in Sindh prices are slightly lower, at PKR 7,100–7,250 per 40 kg. In Balochistan, prices are ranging from PKR 8,000–8,250 per 40 kg. At these elevated prices, most ginners continued to demand higher rates for their lint, while textile mills maintained a firm stance and avoided paying additional premiums.
The current lint price are ranging between PKR 14,800–15,100 per maund and PKR 16,000–16,200 per maund for Balochi cotton, while cotton seed prices are currently PKR 3,350–3,400 per 40 kg in Sindh and PKR 3,150–3,300 per 40 kg in Punjab, at these rates ginners are facing significant financial losses.. According to industry sources, the weighted average lint recovery from 1 maund of seed cotton this year is approximately 13.9 kg and 15.7 kg for Balochi cotton.
When factoring in additional ginning losses of around 2%, along with 1% taxation and ginning cost, ginners are reportedly losing PKR 100–140 per maund. In comparison, during periods of lower seed cotton prices, ginners earned healthy margins of PKR 300–500 per maund. The current market conditions have not only eroded profitability but also halted trading activity, as ginners are reluctant to sell at a loss. Furthermore, the market is primarily focused on high-quality lint, while average-grade cotton remains available in the market. Global demand for cotton has weakened, and domestic challenges including high energy costs, taxation, and operational expenses continue to strain the industry. As a result, textile exports are under pressure, which further impacts the liquidity and bargaining power of ginners.
