KARACHI: Cotton prices remained largely stable this week, with trading activity continuing at a reasonable pace across the market. New York cotton prices, meanwhile, showed an upward trend, reflecting positive sentiment in international markets.
Despite prevailing uncertainty in the region, Pakistan’s textile exports have reached a new record high. Commenting on the development, Khurram Mukhtar said that a ten percent increase in exports during the first month of the new fiscal year was an encouraging sign for the industry.
However, complaints regarding contamination and trash content in cotton have risen in recent weeks, raising concerns among stakeholders about quality control. On a more positive note, Pakistan is set to introduce fourteen standardized seed varieties of the finest cotton quality, a move expected to strengthen the sector’s long-term output.
In another development, the All Pakistan Textile Mills Association (APTMA) welcomed the government’s announcement of a twenty billion rupee payment to the textile industry, calling it a much-needed relief for the sector.
Despite these positive indicators, Pakistan’s agricultural sector, particularly the cotton industry, continues to face significant challenges. Concerns have been raised that key stakeholders, including the public, the government, and national institutions, remain largely disengaged from the administrative process, a gap that industry observers say could hinder sustained progress if left unaddressed.
Cotton prices remained stable in the local cotton market during the past week, with textile mills showing keen interest in purchasing cotton while ginners are also selling at reasonable rates. Trading volume has improved as well. However, the supply of seed cotton (phutti) has been delayed following recent rains, prompting ginners to proceed cautiously with their business. Many ginners are still delaying the delivery of deals struck earlier at lower rates, and as a result, several mills that had booked deals at those lower prices are now pressing ginners for delivery, though many ginners continue to merely promise delivery without fulfilling it.
It is hoped that the supply of phutti will increase within ten to twelve days after the rains, as only a limited quantity is currently arriving in the market. Meanwhile, complaints about contamination and trash in cotton are on the rise, and ginners are being urged to take this matter seriously. In addition, experts at the Central Cotton Research Institute (CCRI) are advising growers on protecting their crops from pest attacks following the rains. On a more positive note, it has been announced that Pakistan is set to introduce fourteen improved cotton seed varieties.
The Karachi Cotton Association raised the spot rate by 100 rupees per maund, closing it at 18,300 rupees per maund.
In Sindh province, cotton prices ranged between 17,900 and 18,300 rupees per maund depending on quality, while phutti was priced between 7,000 and 7,700 rupees per 40 kilograms.
In Punjab province, cotton prices ranged between 18,500 and 18,800 rupees per maund, while phutti sold for between 8,400 and 9,200 rupees per 40 kilograms.
In Balochistan province, cotton prices ranged between 18,400 and 18,500 rupees per maund, while phutti was priced between 8,300 and 8,800 rupees per 40 kilograms.
Karachi Cotton Brokers Forum Chairman Naseem Usman reported that international cotton prices trended upward, with New York cotton futures ranging between 83 and 87 US cents per pound. According to the USDA’s weekly export and sales report, 55,900 bales were sold for the 2025-26 season, with China leading the purchases at 4,100 bales, followed by Pakistan in second place with 2,200 bales, and Nicaragua in third place with 900 bales.
For the 2026-27 season, sales reached 242,100 bales, with Vietnam topping the list by purchasing 132,400 bales, followed by Turkey in second place with 41,600 bales, and Honduras in third place with 20,500 bales.
Exports for the period totalled 222,800 bales, with Vietnam leading as the top importer at 88,900 bales, followed by Pakistan in second place, importing 35,500 bales, and Turkey in third place, importing 19,500 bales.
Meanwhile, the government has announced payments of 20 billion rupees to the textile industry, a move welcomed by the All Pakistan Textile Mills Association (APTMA), which said the initiative would provide much-needed liquidity to exporters.
According to details, APTMA welcomed the federal government’s decision to release 20 billion rupees in long-pending dues owed to the industry. The association said the move would provide exporters with badly needed cash flow and further strengthen confidence in Pakistan’s export-led growth strategy.
Separately, Patron-in-Chief of the Pakistan Textile Exporters Association Khurram Mukhtar termed the ten percent increase in exports during the first month of fiscal year 2026-27 encouraging. He said the total value of exports in July 2026 rose to 2.96 billion dollars compared to 2.69 billion dollars in the same month of the previous fiscal year, while textile exports also grew by nine percent, rising from 1.68 billion dollars to 1.83 billion dollars. He added that whenever the export sector has been provided a conducive business environment, it has consistently performed well.
Despite regional uncertainty, Pakistan’s textile exports have hit a new record. Textile exports reached a record 1.833 billion dollars in July 2026, marking a 43 percent increase on a monthly basis and a 9.11 percent rise on a yearly basis.
The Central Cotton Research Institute (CCRI) has advised cotton growers to intensify pest surveillance and adopt crop management measures immediately, as recent rains and rising humidity have created favourable conditions for jassid, whitefly and pink bollworm attacks.
According to Sajid Mahmood, Head of the Technology Transfer Department at CCRI Multan, these recommendations were issued following the 10th meeting of the Farmers Advisory Committee, which was chaired by CCRI Director Sabahat Hussain.
Pakistan approved 14 cotton varieties during 2021-2025, featuring improved fibre quality, higher ginning out-turn (GOT), heat tolerance, resistance to drought and bollworms, strengthening the country’s cotton seed portfolio and supporting the textile industry.
Official documents available with Wealth Pakistan show that two major cotton research institutions developed the approved varieties. The Central Cotton Research Institute (CCRI), Multan, developed 11 varieties, while the Central Cotton Research Institute (CCRI), Sakrand, produced three varieties.
For quite some time, cotton purchasers and textile mills have continued to complain that contamination in cotton is rising instead of decreasing, a matter of concern for the entire cotton industry.
If Pakistan genuinely wants to improve the quality of its cotton, contamination must be addressed as the foremost priority. This is an issue that can be tackled domestically and does not require waiting for any new government policy.
Pakistan’s agricultural sector, particularly the cotton industry, faces significant challenges, with concerns that key stakeholders, including the public, the government and national institutions, remain largely absent from the administrative process.
Critics say that the bureaucracy, which is expected to facilitate informed decision-making, has not always ensured adequate transparency and effective communication within the sector.
A national institution, the Pakistan Central Cotton Committee (PCCC), is facing a host of challenges including an acute shortage of staff, 564 vacant posts out of a total of 752 posts (only 26% working staff), five positions of grade 20 officers lying vacant for over a decade, promotions and recruitment held in abeyance for around 15 years, an official source revealed on the condition of anonymity.
Moreover, according to the official, the financial crisis persists due to suspension of salaries and pensions at the PCCC from July 2025 to April 2026, more than Rs2 billion outstanding dues of the textile sector stuck on account of weak recovery system by the Ministry of National Food Security and Research (MNFSR), cotton cess at Rs50 per bale since 2012 despite multiple increases in operational costs.
When it comes to administrative imbalances, there is no permanent vice president of the PCCC, and non-payment of due ad hoc relief for several years, the official said.
“The flaws in planning and policy are also procrastinating merger of the PCCC into the Pakistan Agriculture Research Council (PARC) despite the 18-month-old government’s approval,” they said.
Pakistan’s textile sector demands 15 million bales annually. Last year, the country imported 7 million bales worth two and a half billion dollars from Brazil and the United States. This year, the country is targeting the import of another 7 million bales, as it is barely able to produce 6 million bales domestically.
Pakistan has set a target of cultivating cotton on 5 million acres this year, with a production target of approximately 9.6 million bales. According to the latest report of the Pakistan Cotton Ginners Association (PCGA), 785,926 bales had reached ginning factories across the country by July 31, 2026.
Pakistan has achieved a bumper cotton crop on three occasions in its history: 12.8 million bales in 1991-92, 14.8 million bales in 2004-05, and 14.0 million bales in 2014-15.
According to the PCGA report, Pakistan produced approximately 5.6 million bales of cotton during the 2025-26 season. Based on the current condition of the crop, cotton production this year is also expected to remain in the range of 5.5 to 6.0 million bales.
The legal process of merging the Pakistan Central Cotton Committee (PCCC) into the Pakistan Agricultural Research Council (PARC) is complete, as the Ministry of Law urged the Ministry of National Food Security and Research to have it examined by the National Assembly and the Senate.
According to experts, the cotton sector cannot recover until a national cotton policy is formulated, since the adverse effects will continue, including a threat to the government’s credibility, negative impact on the national economy, and the failure of the PCCC. No cabinet meeting has been convened for several months regarding the PCCC’s merger
The PCCC is the largest national institution for cotton, with an annual budget of 800 million rupees, while the Punjab Cotton Research Department has an annual budget of 7 to 8 billion rupees. Following the 18th Amendment, agriculture falls under provincial jurisdiction.
Speaking to Business Recorder, Dr. Yousuf Zafar, former Vice President of the PCCC, said that the Cabinet’s Special Committee on federal government rights legislation and reorganization had decided in January 2025 to merge the PCCC with PARC. Meanwhile, a second committee on special crops, headed by Deputy Prime Minister (DPM) Ishaq Dar, gave verbal instructions to complete this process in parliament or to complete it through the President within a legally permissible period of three months.
At a subsequent meeting on the cotton crop in October 2025, the DPM asked the All Pakistan Textile Mills Association (APTMA) to take charge of the PCCC. The former prime minister proposed the establishment of an autonomous cotton board. Even amended minutes were issued by the Ministry of National Food Security and Research (MNFSR). However, no such board was announced by the federal cabinet, as the summary was not forwarded by the concerned ministry. According to Zafar, the federal government’s indecisiveness and lack of clarity remain the obstacle to resolving the PCCC’s long-standing problems.
Poor governance by the federal government and the absence of a clear roadmap are two major reasons behind the country’s declining cotton production. The Export Facilitation Scheme (EFS) allowed duty-free imports of raw cotton and yarn, which resulted in large-scale dumping by China and devastated local looms and spinning mills.
Some textile houses, focused on short-term gains, are pressing decision-makers to liberalise cotton imports, which reached nearly three billion dollars last year. The seed mantra that our ruling elite recites at every cotton meeting is misplaced and overemphasised. It is not a single issue; rather, the entire cotton value chain needs to be transformed from farm to fashion, or F2F. Farmers, researchers, ginners, traders and textile houses must be engaged in a meaningful strategic implementation plan to urgently secure at least fifteen million bales of quality cotton. Strong political commitment is essential for the success of such a programme.
Veteran progressive farmer Chaudhry Javed Riaz said the bureaucracy bears primary responsibility for this mess, as the research institution system is falling apart, with officers and staff being deprived of salaries, pensions and other facilities.
Discussing possible solutions, he said cotton production in the country cannot be improved to meet the demand of the local textile sector unless a clear-cut cotton policy is formulated. He said immediate measures should be taken to protect the cotton sector right after wheat cultivation, cotton should be grown, and research should be conducted in line with climate change. He also called for crop zoning to protect “white gold,” noting that the cotton belt of southern Punjab has been converted into a sugarcane zone following the establishment of sugar mills there.
He further called for the provision of quality cotton seed, following proper research, to boost production, along with reducing input costs by subsidising fertilisers and fixing a support price to benefit farmers so that they can earn a fair return and reinvest in future crops.
Copyright Business Recorder, 2026