Karachi: The Pakistan cotton market has experienced moderate prices this week in the midst of serious concerns concerning a sharp drop in national cotton production, even though cotton imports exceeded local production for the first time in the history of the country. This change marks a critical moment for the economy of Pakistan and its textile industry in difficulty, analysts said.
In Sindh and Punjab, cotton prices have decreased from RS200 to Rs400 by 40 kg. In Punjab, prices varied from RS16,400 to RS16,700 by MANND, while in Sindh, they raised to RS16.100 to RS16 300. Phutti prices (raw cotton) in the Sindh were between 6,700 Rs and 6,900 rupees, and in Punjab, they varied from RS6,800 to RS7 400. Balutchistan reflect those of the Sindh.
Despite intermittent precipitation hindering the arrivals of Phutti and restricting factory operations in various regions, large groups of mills have shown renewed interest in local cotton. However, due to the planned rains, many equal units remain hesitant to obtain loose Phutti.
Naseem Usman, president of Karachi Cotton Brokers Forum, reported the stability of international prices, New York cotton negotiating 66 to 69 cents per book. The rate committee at the point of the Karachi Cotton Association maintained the cash price at RS16,300 by MAnd.
From July 15, only 297,751 balls had reached ginning factories – down 32% compared to last year, according to data from Pakistan Cotton Ginners Association. While Punjab saw an increase of 27% at its arrivals, the production of Sindh plunged by 53% and Balutchistan fell by 54%.
For the first time, cotton imports exceeded domestic production. Contracts of 7.5 million balls were signed for 26 FY, costing up to $ 2.25 billion, according to president of Cotton Ginners Forum, Ehsanul Haq. During exercise 25, imports amounted to 6.5 million bullets, excluding additional imports of thread, fabric and edible oil.
The USDA reported 5,500 balls sold for 2024-25 and 73,000 for 2025-26, Pakistan ranking third among importers with 12,400 balls.
Experts attribute the domestic crisis to climatic impacts, lower quality seeds, pest infestations and water shortages in the Sindh. The rebirth of a long -standing agreement on cotton payments between the central Pakistan Cotton Committee (PCCC) and the APTMA is considered a promising step towards the restoration of cotton research and productivity in the country.
To reverse the trend, EHSAN called on the government to prohibit the cultivation of sugar cane and the establishment of sweets in cotton areas declared to prioritize cotton cultivation and save billions of exchange.
Meanwhile, the APTMA urged the Minister of Finance Muhammad Aurangzeb to honor budgetary promises by applying an 18% sales tax on all imported cotton fibers, wires and gray fabric, and keep them within the framework of the Export Facilitation Program (EFS). APTMA also demanded the abolition of more than 86% of the surmounted sales tax to restore more than 1,000 dialing and oil cushion factories and help stabilize farmers’ income and the national economy.
