KARACHI: Prices of quality cotton remained largely stable overall, with rates reaching the season’s highest level of twenty thousand rupees, although trading volume remained relatively limited. New York cotton prices also showed a general improvement during this period.
On the weather front, torrential rains caused partial disruption to the sowing of early cotton crop in the lower regions of Sindh province, leaving farmers facing considerable difficulties as a result.
The government has imposed a sharp and substantial increase in petrol and diesel prices. According to experts, this hike is expected to have adverse effects on the cotton and textile industry.
Head of the Transfer of Technology Central Cotton Research Institute Multan Sajid Mahmood noted that the ginning and textile sectors hold significant importance within the cotton value chain in terms of energy consumption, and that the rise in energy prices will have serious negative consequences for these industries as well.
Stakeholders and the Pakistan Cotton Ginners Association mounted an effective protest against the establishment of new sugar mills, and the government has taken notice of their concerns.
Under the auspices of the Punjab Agriculture Department, an inaugural seminar was held in Bahawalpur as part of the “Grow More Cotton” campaign, with the aim of encouraging farmers to increase cotton cultivation across the region.
The upward trend in polyester fibre prices continues to persist. On the judicial front, the Director General of the Federal Investigation Agency has been summoned in a personal capacity before the honourable Sindh High Court over the matter of continuing operations at the Karachi Cotton Exchange despite an existing stay order.
The local cotton market witnessed an overall bullish trend during the past week. Quality cotton was traded at Rs. 20,000 per maund, while average cotton prices ranged between Rs. 18,500 and Rs. 19,500 per maund. Prices of other cotton-related commodities, including cottonseed cake (khal), cottonseed (binola), and cottonseed oil, also remained on an upward trajectory.
Cotton stocks across the country are depleting rapidly, with current reserves falling to critically low levels. As a result, textile mills in urgent need of raw material are accelerating their purchasing activity to secure available supplies before the situation worsens further.
The new cotton crop is expected to partially arrive in the market around May and June, though prices at that time are also anticipated to remain relatively high. Meanwhile, the ongoing conflict in the Middle East is causing delays in the delivery of imported cotton, further straining the already tight supply situation. In addition, due to tensions between Pakistan and Afghanistan, approximately 800,000 bales of cotton that were expected to be imported from Afghanistan have not been received, adding to the supply shortfall.
The domestic cotton crop was already in a state of decline, and the situation is being further aggravated by the installation of sugar mills in cotton-producing zones and regions. This shift in land use is expected to reduce cotton cultivation even further. Instead of recovering, cotton production in the country continues to follow a downward trajectory year after year. Despite hollow promises of cotton revival, production has been declining consistently for several years, leading to an ever-increasing reliance on imports of both raw cotton and edible oil, draining valuable foreign exchange reserves — a reality to which the government appears to remain indifferent.
In Sindh and Punjab, cotton prices are currently ranging from Rs. 18,500 to Rs. 20,000 per maund, depending on quality and payment conditions. Prices of cottonseed cake, cottonseed, and cottonseed oil continue to show a firming trend.
It is pertinent to note that the Karachi Cotton Exchange building has been sealed by the Evacuee Trust Property Board (ETPB) with the assistance of the Federal Investigation Agency (FIA) since December 12, owing to which the critically important daily cotton spot rate has not been officially issued, leaving market participants without a key pricing benchmark.
Karachi Cotton Brokers Forum Chairman Naseem Usman stated that bullish sentiment continues to dominate international cotton markets, with New York cotton futures trading between 70 and 75 US cents per pound.
According to the USDA weekly export and sales report, total cotton sales for the marketing year 2025-26 reached 371,475 bales. Vietnam led all buyers by purchasing 175,500 bales, while Turkey came in second with purchases of 59,400 bales. For the 2026-27 marketing year, sales stood at 117,271 bales, while total export shipments during the reported period amounted to 356,663 bales.
In a move that has sent shockwaves through the country’s economy, the government has imposed a staggering increase in petrol and diesel prices, raising petrol by Rs136.83 per litre and diesel by Rs184.14 per litre. The decision has unleashed a severe wave of inflation across the nation, with electricity and gas tariffs also expected to follow suit.
The price hike has dealt a crippling blow to an already struggling public and industrial sector. Industries that were barely managing to sustain operations amid previous energy cost increases are now facing the prospect of complete shutdown. The cotton and textile sectors, in particular, are expected to bear the brunt of this latest blow. Banking interest rates are also anticipated to rise in response, while transport fares have already surged dramatically, making everyday goods increasingly unaffordable for ordinary citizens. The broader business community is reeling under the pressure, and economists warn that the contraction of industry and commerce will inevitably lead to a sharp rise in unemployment.
Fearing a massive public backlash following the announcement, the government has temporarily reduced the government levy by Rs80 per litre for a period of one month. As a result, the current price of petrol has been set at Rs378 per litre for the time being.
The Pakistan Cotton Ginners Association (PCGA) has raised a formal alarm over the proposed establishment of new sugar mills in Rahim Yar Khan and along the Sindh-Punjab border, warning that the continued encroachment of sugarcane into traditional cotton zones is pushing the national economy toward a precarious precipice. In a series of high-level letters dispatched to the Chief Justice of Pakistan, Justice Yahya Afridi, and the Chief Justice of the Federal Constitutional Court, Justice Amin-ud-Din Khan, the PCGA underscored the dire consequences of ignoring crop zoning laws. Similar appeals were sent to Prime Minister Shehbaz Sharif, Chief of Army Staff General Asim Munir, Punjab Chief Minister Maryam Nawaz Sharif, and Sindh Chief Minister Murad Ali Shah. The association highlighted that Rahim Yar Khan, once the “gold standard” of Pakistan’s cotton production with a yield of 1.8 million bales annually, has been systematically transformed into a sugarcane stronghold. The district currently houses six sugar mills, with four additional units operating on the nearby Sindh-Punjab border, boasting a massive combined crushing capacity. Reports suggest that three more units—one in Zahir Pir and two on the provincial border—are currently in the pipeline. “Cotton is the backbone of Pakistan’s exports,” the PCGA stated. “Yet, due to the lack of enforcement regarding crop zoning, national production has plummeted from a peak of 15 million bales to a staggering low of 5.5 million bales.” This decline has forced the state to expend billions of precious foreign exchange reserves on importing raw cotton and edible oil.
Copyright Business Recorder, 2026
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