Cotton textile production is the most important of Pakistan's industries, accounting for about 60% of total exports in 2000/01. Pakistan has become self-sufficient in cotton fabrics and exports substantial quantities.

The marketing of seed cotton is a complex operation that includes all transactions involving buying, selling or reselling from the time the seed cotton is ginned until it reaches the textile mill.

In Bahawalpur which is one of the largest cotton producing districts of Pakistan, growers usually sell their cotton to a local buyer or merchant after it has been ginned and baled.

According to survey done by WWF – Pakistan, there are three marketing channels active in Bahawalpur and Yazman Tehsil which are summarized below:

Channel I

The above mentioned channel is the most popular marketing channel prevailing in Bahawalpur district. According to this, middle men collect cotton seeds from the farmer. Whereby, he bears all the costs involved which include: loading / unloading, weighing labor charges and transport costs etc. Payment is made at the spot to the cotton growers.

1. Market (Mandi) and
2. Ginning Factories

Each channel has its own merit and demerit. In case of first channel, the advantage is that buyer is available at the door step but there are all sorts of likelihood that the farmers will get less price of its seed cotton. Moreover, the weighing machine is adjusted as such that the seed cotton would be under weight.

In case of second channel, there is a major issue of katoti.