KARACHI: Cotton prices witnessed sharp fluctuations this week as increased buying activity by textile mills initially pushed rates up by as much as Rs 700 per maund.
However, prices retreated by Rs 300 to Rs 400 on the final day of the week after a rise in the supply of phutti (seed cotton) eased pressure on the market. The spot rate, meanwhile, closed the week up by Rs 700.
Industry sources also reported a 25 percent increase in cotton production for the current season, a development that was welcomed across the sector as a sign of improving output.
In a related development, a delegation of the Pakistan Cotton Ginners Association (PCGA) called on former Senator Chaudhry Masood Majeed to discuss measures aimed at boosting cotton production and to review strategies for the sector’s future growth. Separately, the Pakistan Cotton Brokers Forum (PCBF) hosted a get-together for stakeholders in the cotton trade, providing a platform to discuss the challenges and opportunities currently facing the industry.
On the global front, China continues to import large volumes of cotton yarn from India, a trend that analysts say is shaping international supply and demand patterns.
On the domestic front, the Evacuee Trust Property Board (ETPB) announced the resolution of a long-standing dispute over ownership of the Cotton Exchange Building, a decision welcomed by industry stakeholders.
In a further boost to the sector, Pakistan has decided to draw on Egypt’s expertise to help raise cotton production, with officials saying the move will deepen cooperation between the two countries and contribute to sustainable improvement in the country’s cotton output.
Business in the local cotton market gathered pace over the past week after an eight-day wheel-jam strike by goods transporters came to an end, with textile mills appearing to have exhausted their patience for the delay. Several mills stepped up their cotton purchases, while phutti (seed cotton) began shifting from Lower Sindh to Khairpur in Upper Sindh.
This reduced the supply of phutti in Lower Sindh and drove up its price there. The improved buying activity by mills led to a marked rise in cotton prices, which climbed by around 500 to 700 rupees, while the spot rate also gained 700 rupees.
Despite the higher prices, mills in need of cotton continued their purchases undeterred, pushing the price of cotton in Sindh province up to a range of 18,800 to 19,000 rupees per maund. Analysts noted that the rally was partly driven by a rise in New York cotton futures. However, prices eased by 300 to 400 rupees toward the end of the week as the supply of phutti increased.
Separately, a Get-Together session organised by the Pakistan Cotton Brokers Association (PCBA) was held in Sanghar, Sindh, which was also attended by this correspondent.
The event brought together brokers and ginners from Sindh and Punjab, who shared their assessments of the cotton crop in both provinces. Most participants expressed cautious optimism, saying the crop was currently in good condition, though in Punjab the crop was still standing and yet to mature fully. They added that if rains in September did not cause disruption, the crop was expected to turn out well.
The session was hosted by Haji Khalid Waheed of Sanghar on behalf of the PCBA, who was widely praised for organising the event efficiently, providing an valuable platform for ginners, cotton brokers and textile mill representatives to exchange views.
Speaking at the gathering, PCBA’s former chairman Major Kashif (R) outlined the objectives behind the association’s formation and briefed attendees on its registration process and representation within the Federation of Pakistan Chambers of Commerce and Industry (FPCCI).
PCBA chairman Rana Shafqat also addressed the session, updating participants on the association’s current progress and outlining its future plan of action.
The Chairman of the Karachi Cotton Borkers Forum, Naseem Usman, has accused the Evacuee Trust Property Board (ETPB) of forcibly occupying the historic building of the Karachi Cotton Association (KCA) for the past eight months, allegedly with the support of the Federal Investigation Agency (FIA).
Addressing the matter, Usman said that despite orders from the Sindh High Court, ETPB officials continue to bar 320 registered cotton brokers, who have maintained offices in the KCA building for the last 80 years, from entering the premises.
He alleged that the brokers have also been denied access to remove their essential belongings, and that ETPB officials broke the locks of their offices to occupy them and are now conducting business from inside, using facilities such as air conditioning, the utility bills for which are reportedly being charged to the tenants.
Usman further claimed that the tenants have been attempting to contact ETPB officer Asif Khan for several days through phone calls and written correspondence, but have received no cooperation. He said the tenants have not even been permitted to retrieve important documents, files, and copies of the Holy Quran from their offices, calling the situation an extreme case of injustice.
Meanwhile, the ETPB has stated that it has resolved the dispute concerning ownership of the Cotton Exchange building.
Cotton prices showed a mixed but generally firm trend across Pakistan’s major growing provinces. In Sindh, quality-based cotton prices touched Rs19,000 per maund before easing back to Rs18,700, while seed cotton (phutti) traded between Rs8,700 and Rs8,800 per 40 kg. In Punjab, cotton prices ranged between Rs19,200 and Rs19,300 per maund, with phutti fetching Rs8,800 to Rs9,200 per 40 kg. Balochistan’s cotton market saw prices settle at Rs18,800 per maund, while phutti prices there also ranged between Rs8,800 and Rs9,200.
Prices of cottonseed cake and cottonseed oil likewise trended higher during the period.
Reflecting the overall bullish sentiment, the Karachi Cotton Association raised its spot rate by Rs700 per maund, closing at Rs19,000 per maund.
Commenting on the international market, Karachi Cotton Brokers Forum Chairman Naseem Usman said global cotton prices remained on an upward trajectory, with New York cotton futures trading between 87 and 91 US cents per pound.
According to the US Department of Agriculture’s weekly export and sales report, total sales for the 2026-27 marketing year reached 209,400 bales. Vietnam led the buyers with purchases of 55,400 bales, followed by Pakistan in second place with 51,900 bales, and El Salvador in third with 40,100 bales.
For the 2027-28 marketing year, sales totaled 64,900 bales, with El Salvador emerging as the top buyer at 35,100 bales, followed by Guatemala with 15,400 bales and Honduras with 14,300 bales.
On the export side, total shipments stood at 222,000 bales. Vietnam was the leading importer with 66,800 bales, followed by Pakistan with 30,200 bales and India with 28,200 bales, according to the USDA report.
Cotton arrivals across Pakistan have surged by 25.48 percent during the current season, reaching 1,113,513 bales by August 15 compared with 887,401 bales in the corresponding period last year, according to a report issued by the Pakistan Cotton Ginners Association (PCGA) on August 18.
Sajid Mahmood, Head of the Transfer of Technology Department at the Central Cotton Research Institute, Multan, said the number of operational ginning factories had also risen nearly 10 percent to 268, signalling improved sector activity.
Punjab recorded a modest 2.61 percent rise in arrivals, while Sindh and Balochistan together posted a sharp 41.80 percent increase, led by Sanghar district.
Mahmood welcomed the trend but cautioned that final production would depend on weather and market conditions ahead. He called for a coordinated national strategy covering research, quality seed, water availability and profitable prices, stressing that farmers would keep investing in cotton only if offered reliable markets and fair returns.
Chairman of the Karachi Cotton Brokers Forum, Naseem Usman, has said that fundamental factors in the cotton market are gradually improving, citing steady mill demand, limited pressed cotton stocks and supportive international prices.
China’s cotton yarn purchases from India have nearly tripled in ten months. According to the latest United States Department of Agriculture (USDA) assessment, India’s share of Chinese yarn imports rose from 7 percent to 21 percent over the period, helping increase India’s total cotton yarn exports by a total of 8 percent during the current marketing year.
Vietnam is now India’s main competitor for the Chinese order, while Pakistan’s share has receded. The immediate question for Pakistan is obvious: if China suddenly needed more yarn, why was one of the world’s old cotton and textile centres unable to capture more of that demand?
Part of the answer lies in what made the Indian yarn so attractive. The Iran conflict produced wider supply-chain and fuel disruption just as China faced tight cotton availability and delays in shipments from suppliers including the United States and Brazil. China, which imports both raw cotton and yarn to feed the world’s largest textile industry, needed a closer source. India had the cotton, spinning capacity and ports ready to respond.
A delegation of the Pakistan Cotton Ginners Association (PCGA), led by former PCGA Chairman Chaudhry Waheed Arshad, met with several senior political leaders at the residence of former Senator Chaudhry Saud Majeed to discuss the mounting challenges facing the country’s cotton ginning industry.
The delegation, which also included former PCGA Vice Chairman Hafiz Abdul Latif and Malik Ejaz Nazim, held talks with Rana Sanaullah, Advisor to the Prime Minister of Pakistan; Mian Muhammad Usman Aweisi, MNA and member of the FBR Tax Reforms Committee; Malik Abrar, MNA; Senator Anusha Rahman; Chaudhry Nasir Abbas Sidhu, MNA; Dr. Tariq Fazal Chaudhry, MNA; Anjum Aqeel, MNA; and Raja Khurram, MNA.
During the meeting, participants held a detailed discussion on the steady decline in the country’s cotton output and the strain it has placed on the agriculture, textile and ginning sectors. The PCGA delegation drew particular attention to the heavy tax burden on the ginning industry, warning that it was compounding the sector’s difficulties and taking a serious toll on its overall viability.
Speaking on the occasion, the delegation said the ginning industry was already reeling from falling cotton production and that the imposition of heavy taxes, along with other financial burdens, had made it increasingly difficult for ginners to sustain their operations. They cautioned that the situation was having a direct impact not only on the ginning industry but also on cotton growers and the broader textile sector.
The political leaders present at the meeting expressed agreement with the PCGA’s concerns and assured the delegation that the grievances of the cotton ginning industry would be conveyed to the Prime Minister of Pakistan. They pledged to raise the issue at relevant forums and voiced hope that concrete steps would soon be taken to ease the tax burden on the industry.
In response, the PCGA delegation thanked the leaders for hearing out the industry’s concerns and for their assurance of taking the matter forward to the Prime Minister.
The Evacuee Trust Property Board (ETPB) has informed the Sindh High Court that its chairman has decided the ownership dispute about the Karachi Cotton Exchange building and declared the historic building as the federal evacuee trust property.
The ETPB also submitted that a letter has also been written to the Printing Corporation of Pakistan for publication of the subject property in the gazette notification on Aug 18.
However, the counsel for Karachi Cotton Association (KCA) and other petitioners argued that the chairman ETPB has not issued any notice to them before deciding the matter while the SHC’s directive about referring the matter to the ETPB chief had already been challenged before the Federal Constitutional Court.
They also submitted that despite the court order, the property in question has not been de-sealed and the petitioners were barred from entering the premises.
Historic building declared federal evacuee trust property, SHC informed
Citing the chairman ETPB Qamar-uz-Zaman, administrator/zonal head ETPB Karachi Asif Khan and deputy administrator Shahid Ali as alleged contemnors, the KCA and other petitioners had filed applications seeking contempt proceedings against them for willfully disregarding the court judgement, handed down on June 18, and refusing to hand over the building to the petitioners.
When the matter came up for hearing before a two-judge constitutional bench of the SHC headed by Justice Mohammad Saleem Jessar, the counsel for ETPB Akram Tariq and others filed comments along with a copy of the order passed by the chairman on July 30.
The board in its reply submitted that in compliance with the judgment of the SHC, the chairman of ETPB has duly considered and decided the matter and has passed a reasoned order/judgment wherein the subject property has been declared as an evacuee trust property vested in the federal government on the basis of substantial evidence/record.
It also contended that for publication of the property in the gazette notification under Section 8 of the Evacuee Trust Properties (Management and Disposal) Act, 1975, a letter has already been written to the Printing Corporation of Pakistan on Aug 18.
It also contended that the June 18 judgement of the SHC has itself been assailed before the Federal Constitutional Court by the concerned parties, including the Federal Investigation Agency, Karachi Metropolitan Corporation, Sindh government and others.
The ETPB further maintained that the alleged contemnors have neither willfully nor deliberately disobeyed any direction of the SHC and on the contrary, the specific direction has already been complied with and pleaded to dismiss the contempt applications.
However, the counsel for applicants Anwar Mansoor Khan, Arshad Tayebally, Talha Javed and others argued that there were two directives in the main judgement of the SHC as it had referred the matter to the ETPB chief to decide the same and, secondly, to hand over the possession of the building to petitioners.
However, they submitted that the compliance was not made with the second directive since the property in question has not been de-sealed and petitioners were not allowed to enter into the premises even before passing an order by the chairman of ETPB while notices were not issued to the petitioners about such proceedings.
The lawyers further submitted that the petitioners have challenged the judgement of SHC to the extent of referring the ownership dispute of the building to the ETPB chief and the matter was likely to be fixed before the FCC soon.
The bench has taken the comments along with the order filed by the ETPB on record and provided the copies of the same to the lawyers for applicants/petitioners, deputy attorney general and an assistant advocate general Sindh.
Federal Minister for National Food Security and Research Rana Tanveer Hussain sought Egypt’s support during a meeting with Egyptian Ambassador to Pakistan Dr. Ihab Mohamed Abdelhamid Hassan, according to an official statement.
Hussain said Pakistan could benefit from Egypt’s experience in cotton varieties, quality seed, crop management and value addition. He also highlighted Egypt’s progress in modern agriculture, water management, climate resilient farming and agricultural technologies.
Copyright Business Recorder, 2026