KARACHI: The domestic cotton market is currently witnessing price stability for quality cotton, and trading volumes have remained relatively better, however, cotton stocks are continuously shrinking, which could complicate the situation further in the days ahead.
The All Pakistan Textile Mills Association (APTMA) has issued a clear warning that no further textile mills should be allowed to shut down, as the textile sector is already passing through severe difficulties. The association cautioned that if timely measures are not taken, the industrial crisis could deepen significantly and cause irreversible damage to one of the country’s most vital economic sectors.
Against this backdrop, Federal Minister of Finance Muhammad Aurangzeb has promised to introduce reforms in the cotton and textile sector within the next ten to twelve days. Similarly, Federal Minister of Commerce Jam Kamal Khan has assured a delegation of textile exporters that the issues facing the value-added textile sector will be given thorough and detailed consideration. The delegation also brought to the Commerce Minister’s attention the serious financial hardships being faced by exporters due to prolonged delays in the processing of refunds.
As cotton stocks continue to decline, textile mills have significantly increased their cotton imports in order to ensure that their production processes remain uninterrupted. On another front, the Central Cotton Research Institute (CCRI) Multan has issued its preliminary recommendations regarding the early sowing of cotton crops, aimed at supporting better agricultural planning for the upcoming season.
A deeply alarming situation has emerged in connection with the Karachi Cotton Exchange Building. The Evacuee Trust Property Board (ETPB), with the assistance of the Federal Investigation Agency (FIA), has kept the building sealed for eighty consecutive days, as a result of which approximately five thousand employees associated with 320 registered cotton brokers and tenants have been rendered jobless and unemployed. The brokers themselves find themselves in a helpless situation with no support available from any quarter. This prolonged closure has also suspended the Daily Cotton Spot Rate for eighty days, a figure of critical importance to the entire cotton trade, severely disrupting market operations across the board. The hearing of this matter before the honourable Sindh High Court is scheduled for the fourth of March.
The local cotton market witnessed overall price stability throughout the past week. Textile spinners continue to show keen interest in procuring quality cotton, which has helped sustain firm prices in that segment. Ginners, who had previously stockpiled quality cotton, are now showing willingness to offload their inventory, resulting in a relatively higher trading volume during the week. This uptick in activity is largely attributed to the gradual depletion of available cotton stock in the market.
However, the broader textile sector remains in a troubled state. The industry is grappling with multiple challenges simultaneously, including high energy costs, elevated interest rates, non-payment of substantial refunds, heavy taxation, super taxes, and the newly imposed Sindh Infrastructure Cess, all of which have made it virtually impossible to compete with regional countries. The cost of doing business has risen to an unsustainable level. On the international front, imports of Pakistani textile products by Europe and the United States have declined significantly, while demand and prices for value-added goods have also weakened. Most spinners report that yarn sales are extremely sluggish, compounded by a severe payment crisis that has triggered widespread financial stress across the market. The ongoing month of Ramadan has further contributed to the slowdown in business activity.
Adding to the sector’s woes, the Karachi Cotton Exchange building has remained sealed for 80 consecutive days by the Evacuee Trust Property Board with the assistance of the FIA. As a result, approximately 5,000 employees associated with 320 registered cotton brokers and tenants have been rendered unemployed and idle, while the brokers themselves have been left without any support or recourse. The closure has also suspended the publication of the daily cotton spot rate, a critically important market benchmark, for the same period. The next hearing of the case before the honourable Sindh High Court is scheduled for March 4th.
Early cotton sowing has commenced in selected areas of Sindh and Punjab provinces. The Punjab Agriculture Department has allocated seven hundred thousand acres for early cotton cultivation, of which 315,000 acres have been designated for Multan Division alone.
Cotton prices in Sindh and Punjab are currently ranging between Rs 15,400 and Rs 16,600 per maund, depending on quality and payment conditions. The prices of cottonseed cake and oil remain stable.
Karachi Cotton Brokers Forum Chairman Naseem Usman reported that the international cotton market witnessed relative stability. New York cotton futures traded between 65 and 69 US cents per pound. According to the USDA weekly export and sales report, a total of 253,200 bales were sold for the marketing year 2025-26. Bangladesh led all buyers with purchases of 70,700 bales, followed by India at 59,700 bales, while Pakistan ranked third with 57,400 bales.
For the 2026-27 marketing year, 29,700 bales were sold, with Malaysia topping the list at 22,000 bales and Vietnam ranking second with 7,700 bales. Total exports stood at 193,000 bales, with Vietnam leading imports at 74,200 bales, Pakistan second at 21,300 bales, and Turkey third at 17,300 bales.
Meanwhile, the All Pakistan Textile Mills Association (APTMA) has once again stated firmly that no further textile mills should be forced to shut down in Pakistan, warning that the sector is currently passing through severe difficulties. APTMA has also raised concerns over the refund issue, noting that the Federal Board of Revenue is employing delaying tactics in releasing refunds, which is depleting the working capital of mills and deepening the financial crisis. Industry observers stressed that making the textile sector profitable is now critical to safeguarding employment. The banking sector has also withdrawn its support from textiles in light of prevailing challenges, further compounding the problems. Six days ago, the Finance Minister had promised textile stakeholders that he would bring about significant improvements for the sector within ten to twelve days, and the industry remains hopeful that this commitment will be honoured.
In Islamabad, a delegation of textile exporters met with Federal Minister for Commerce Jam Kamal Khan to discuss in detail the challenges facing the value-added textile sector, particularly highlighting the financial difficulties caused by delays in refund disbursements.
On the cultivation front, the Punjab government has set a cotton sowing target of 315,000 acres in Multan Division under the early sowing program for the 2026-27 season. This target was announced in a meeting chaired by Aamir Karim Khan, Commissioner Multan Division, attended by senior officials of the Agriculture Department. Additionally, the Central Cotton Research Institute Multan has issued its preliminary recommendations for early cotton cultivation in the region.
The first Cotton Advisory meeting of the Technical Advisory Committee was held at the Central Cotton Research Institute (CCRI), Multan, under the chairpersonship of Director Sabahat Hussain. During the meeting, preliminary fortnightly recommendations were issued to guide farmers for the successful cultivation of early-sown cotton. Agricultural experts emphasized that, in view of the prevailing climatic and production conditions, early sowing is critically important for achieving higher yields and ensuring crop protection during the initial growth stage.
In this regard, Sajid Mahmood, Head of the Technology Transfer Department at CCRI Multan, stated that these recommendations have been developed in consultation with experts to enable farmers to make timely decisions in accordance with modern agronomic principles. He advised farmers to conduct soil testing prior to sowing and to apply balanced fertilizers based on the test report to ensure healthy early crop development.
According to agricultural experts, land vacated after the harvesting of potato and mustard is suitable for early cotton cultivation, while relay cropping in standing onion and melon crops can also prove to be a profitable option. For optimum plant growth and proper canopy development, maintaining a plant-to-plant spacing of at least one and a half feet has been recommended.
Sajid Mahmood further explained that for proper land preparation, a chisel plough should be used to break the hard subsurface layer, and laser land leveling should be preferred for efficient utilization of irrigation water and fertilizers. He added that ridge sowing is more effective in preventing waterlogging after rainfall, while the application of at least five trolley loads of farmyard manure per acre or the use of green manure can help improve soil fertility.
Experts have stressed the need for special care in seed selection and advised farmers to procure only approved and healthy seed from reliable sources, giving preference to triple-gene varieties. Seed cleaning, germination testing, and seed treatment with a mixture of imidacloprid and tebuconazole have been declared essential to protect the crop from sucking pests during the first forty days. Timely application of pendimethalin and S-metolachlor has also been recommended for effective weed control.
He further advised that cotton should not be cultivated in fields where okra or brinjal had previously been grown. For off-season management of pink bollworm, it is essential to destroy crop residues, regularly turn cotton sticks, and keep the fields clean.
Sajid Mahmood stated that the institute is ensuring the effective dissemination of these modern recommendations through field visits, training programs, and media outreach so that farmers can receive timely scientific guidance and promote early cotton cultivation. Implementation of these recommendations will not only increase per-acre yield but will also contribute to improving overall national cotton production and provide positive support to the country’s textile sector.
Copyright Business Recorder, 2026