The Pakistan Central Cotton Committee (PCCC), the All Pakistan Textile Mills Association (APTMA), and the Ministry of National Food Security and Research (MNFSR) have forged a memorandum of understanding (MoU) to resolve overdue cotton cess payments owed by APTMA to PCCC.
Federal Minister for Food Security Rana Tanweer Hussain and APTMA Chairman Kamran Arshad formally endorsed the agreement alongside APTMA North Chairman Asad Shafi and the head of the Pakistan Central Cotton Committee.
“The initiative was a part of continuation of national agriculture policy of the government. Its not just an agreement but a decisive practical step to help farmers and revival of cotton in Pakistan,” said Rana Tanweer Hussain.
As part of the agreement, textile mills will pay ₹1.5 billion in cotton cess to the government, disbursed over four installments. APTMA will submit detailed data of all member mills to the Cotton Committee and collaborate to resolve any conflicts. Additionally, the association will ensure payments are made on time, with a 5% penalty imposed on any delayed transactions.
Cotton cess is a compulsory fee paid by textile mills to the PCCC for utilizing cotton bales in the manufacturing process. The revenue generated from this levy supports PCCC’s ongoing efforts in researching improved, high-yielding, and disease-resistant cotton varieties, while also offering farmers technical guidance on modern farming techniques.
Kamran Arshad stated that the government is implementing policy measures to rejuvenate cotton production, including initiatives to bring high-quality cotton seeds. He affirmed that the textile industry has been adversely affected by the decline in domestic cotton availability—an essential income stream for millions of farmers. He further emphasized that textile manufacturers are now compelled to import cotton worth billions of dollars from global suppliers, including the U.S., Brazil, and Australia, to sustain operations.
Arshad also called for the restructuring of the PCCC to establish it as an efficient research body capable of driving innovation and enhancing productivity in cotton farming.
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