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........

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