Textile mills are losing around Rs. 1 crore every day as cotton fumigation has effectively stopped due to a dispute over the clearance of the chemical used for the treatment, sources told ProPakistani.
The disruption has left around 400–500 containers of imported cotton stranded at the port for more than a week, according to the All Pakistan Textile Mills Association (APTMA).
APTMA has urged the government to immediately intervene, warning that the delay could disrupt cotton supplies, affect production and put export orders at risk.
The problem stems from a change in the customs classification of Methyl Bromide, which is used to fumigate imported cotton.
According to APTMA, Methyl Bromide consignments were previously cleared under PCT code 3808.9170 without sales tax. However, Public Notice No. 49/2026 issued on May 19, 2026 classified the chemical under PCT code 2903.6100, making it subject to 18 percent sales tax.
A consignment imported by National Chemicals has remained uncleared because of the classification dispute, according to APTMA.
The association said the clearance issue has now effectively halted the fumigation of imported cotton, preventing the release of hundreds of containers at the port.
APTMA said textile mills are incurring demurrage and other related costs of more than Rs. 10 million per day because of the stranded consignments.
The association warned that imported cotton is a key raw material for export-oriented textile products. Prolonged delays could create shortages for mills, disrupt manufacturing and make it difficult for exporters to meet delivery commitments.
APTMA also cautioned that the disruption could ultimately affect Pakistan’s export earnings and its reputation with international buyers.
Seeking an immediate solution, APTMA proposed the provisional release of the Methyl Bromide consignment under Section 81 of the Customs Act, 1969 as a one-time emergency measure.
As an alternative, it asked the government to allow the affected cotton consignments to be released without fumigation on a one-time basis, subject to an undertaking from the industrial users that the cotton is free from pest infestation.
APTMA has called for urgent action to restore cotton clearance and prevent further financial losses and disruption to textile exports.
