Weekly Cotton Review: Goods transporters’ strike disrupts trade across country
KARACHI: Business in the cotton and textile sectors has come to a near standstill as a prolonged strike by goods transporters continues to disrupt trade across the country. Traders report that while prices in the limited cotton transactions that did take place remained stable, overall trading volume has shrunk to almost nothing.
The ginning and textile industries are said to be gripped by growing anxiety over the standoff, with trade and industrial bodies jointly appealing to the authorities to bring the strike to a swift end.
Shamlal Manglani, Chairman of the Pakistan Cotton Ginners Association (PCGA), said the crisis has been compounded by what he described as excessive government taxation, which has forced ginning factories to shut down in large numbers. He noted that of the twelve hundred ginning factories once operating nationwide, only four hundred remain in business, with the sector continuing to contract by the day.
Khurram Mukhtar, Chairman of the Pakistan Textile Exporters Association (PTEA), warned that the transporters’ extended wheel-jam strike has left export goods worth billions of dollars stranded in mills and factories, raising fears that buyers abroad may begin cancelling contracts if shipments are delayed much longer.
In response to the disruption, the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has called on authorities to waive demurrage charges on goods held up as a result of the strike.
Separately, the dispute over the Karachi Cotton Association’s premises remains unresolved. The Sindh High Court had granted the association temporary relief in an order issued on June 17, permitting it to resume business activities inside the building. Yet, more than sixty days after that ruling, the association says it has still been denied access to the premises.
The cotton business in the local market is suffering badly as a prolonged transport strike and nationwide blockade continues to disrupt supply chains, leaving both ginners and textile mills deeply concerned.
While limited cotton deliveries are still being made in parts of Sindh, the rest of the country remains gripped by a severe transport shutdown. According to market sources, deals for nearly 60,000 bales of cotton have already been finalized in Sindh, but delivery of this cotton remains stalled because freight transport has come to a complete halt.
Meanwhile, Khurram Mukhtar, Chairman of the Textile Exporters Association, revealed that goods worth 50,000 dollars meant for export have been stuck in transit for the past five days as a direct result of the strike.
Talks between transporters and the government have repeatedly broken down. Federal Minister Haleem Khan has signalled that fresh negotiations are scheduled for Monday, August 17, suggesting the strike is likely to persist until at least that date.
In terms of prices, cotton in Sindh traded between 18,200 and 18,300 rupees per maund, with phutti (seed cotton) selling at 7,000 to 8,000 rupees per 40 kilograms. In Punjab, cotton prices ranged from 18,500 to 19,000 rupees, while phutti sold between 8,400 and 9,400 rupees. In Balochistan, cotton prices stood at 18,300 to 18,500 rupees, with phutti trading between 8,400 and 9,200 rupees.
Prices of cottonseed cake, cottonseed, and cottonseed oil remained stable throughout the week.
The Spot Rate Committee of the Karachi Cotton Association maintained the spot rate steady at 18,300 rupees per maund.
Chairman of the Karachi Cotton Brokers Forum, Naseem Usman, has said that international cotton prices are showing an upward trend, with New York cotton futures currently trading between 84 and 88 US cents per pound.
According to the US Department of Agriculture’s (USDA) weekly export and sales report, a total of 905,000 bales were sold for the 2026-27 season. Vietnam emerged as the top buyer, purchasing 222,500 bales, followed by Pakistan in second place with 164,200 bales, while Bangladesh secured third position with 81,100 bales.
On the export front, a total of 67,900 bales were shipped during the period. Vietnam once again led the way, importing 23,800 bales, followed by India, which imported 15,800 bales, while Pakistan came in third with 11,500 bales imported.
Shamlal Manglani, Chairman of the Pakistan Cotton Ginners Association (PCGA), used a childhood memory from the film Sholay to describe the ginning industry’s relationship with the Federal Board of Revenue (FBR), while addressing a dinner held in honour of the FBR chairman.
Recalling the iconic villain Gabbar from the film, Manglani said that in his village, mothers would warn disobedient children at bedtime that Gabbar would come if they did not sleep. He said the ginning industry today lives under a similar shadow of fear, constantly worried that the FBR’s enforcement measures could strike at any time.
Manglani said that rather than fostering facilitation and confidence among the business community, the FBR’s policies and tax procedures have instead bred an atmosphere of apprehension and uncertainty.
He called on the FBR chairman to reform the tax system along business-friendly lines and to design policies that support industrial growth, protect commercial activity, and strengthen the foundations of the national economy.
The PCGA chairman also drew attention to the challenges confronting the cotton industry, stressing the need for urgent and effective government intervention to prevent the sector from slipping further into crisis.
The Pakistan Hosiery Manufacturers and Exporters Association (PHMA) has voiced serious concern over the ongoing transporters’ strike, warning that disruptions to the movement of goods are creating severe difficulties for exporters and posing a grave threat to the country’s export supply chain.
PHMA Southern Zone Chairman Faisal Irshad Sheikh said uninterrupted movement of export cargo is critical to Pakistan’s international trade, particularly for the textile and garment sector. He noted that export shipments are bound by fixed vessel schedules, terminal cut-off times, and strict delivery commitments to international buyers, and that any disruption to transportation results in significant financial losses while eroding Pakistan’s export competitiveness.
Separately, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Atif Ikram Sheikh called on the Ministry of Maritime Affairs — particularly port authorities and terminal operators — to immediately provide financial relief to the business community by granting a complete waiver of demurrage and detention charges, in order to offset the mounting losses already incurred.
He expressed deep concern over the deepening crisis nationwide, pointing out that the wheel-jam strike by transporters, now in its tenth day, has yet to see a peaceful resolution of grievances. Sheikh stressed that the prolonged strike is inflicting severe damage on the national economy, with cargo handling operations at the ports having come to a near standstill.
As a direct consequence, imported goods remain stranded at the ports, and the timely delivery of key export orders has become practically impossible.
Copyright Business Recorder, 2026