Weekly Cotton Review: Panic buying by textile mills leads to a sharp rise in prices
KARACHI: The international market witnessed a notable increase in New York Cotton rates, the effects of which were also reflected in Pakistan’s local cotton market. Panic buying by textile mills led to a sharp rise in cotton prices, while phutti (seed cotton) rates also registered a significant increase. The spot rate rose by three hundred rupees as well, resulting in an overall improvement in trading activity.
Commenting on the situation, Gohar Ejaz, Patron-in-Chief of the All Pakistan Textile Mills Association (APTMA), stated that in order to increase cotton production in Pakistan, it has become essential to reduce sugarcane cultivation, as cotton remains one of the country’s most vital requirements. He added that without boosting cotton output, the challenges confronting the textile sector cannot be effectively addressed.
Meanwhile, growing complaints regarding the adulteration of cotton with waste material have caused serious concern and unrest throughout the entire textile and ginning sector chain. Stakeholders have called on the authorities to take immediate and strict action against ginners involved in mixing waste into cotton, in order to curb this substandard practice and restore the business community’s confidence in the market.
Cotton prices in the local market recorded a significant increase over the past week as textile mills continued panic buying, while ginners, despite being oversold, released cotton only sparingly. Sources say deals for nearly twenty thousand bales at lower rates remain pending for settlement.
Meanwhile, the ginning industry, textile mills, cotton brokers and cotton selectors are grappling with mounting complaints that a section of ginners has been mixing waste material into cotton, tarnishing the reputation of the trade. Industry bodies APTMA, PCGA and PCBA have vowed to take strict action against the culprits, warning that the practice, if unchecked, could severely damage the sector’s credibility. Officials noted that the malpractice compromises the quality of cotton yarn and cloth, which in turn affects value-added textile and garment exports. Countries importing Pakistani garments and value-added products may curtail purchases if quality concerns persist, further denting the country’s already declining textile exports. Several mill owners called for exemplary punishment against those found involved in the practice, with some demanding they be treated as acting against the national interest.
In other developments, APTMA held elections for the term 2026-27, in which Mian Asad Sheikh was elected as the association’s central chairman.
Separately, APTMA Patron-in-Chief Gohar Ejaz stressed the need to reduce sugarcane cultivation in order to boost cotton production, calling cotton a critical requirement for the country’s economy.
Cotton prices firmed up across Pakistan’s major growing regions, with the Karachi Cotton Association raising its spot rate by 300 rupees per maund to close at 19,300 rupees.
In Sindh province, cotton traded between 19,000 and 19,400 rupees per maund, while phutti (seed cotton) sold for 8,500 to 9,200 rupees per 40 kilograms. Punjab saw cotton prices ranging from 19,200 to 19,300 rupees per maund, with phutti fetching between 8,800 and 9,400 rupees per 40 kilograms. In Balochistan, cotton prices ranged from 19,300 to 19,500 rupees per maund, while phutti sold for 9,000 to 9,500 rupees per 40 kilograms.
Naseem Usman, Chairman of the Karachi Cotton Brokers Forum, said international cotton prices were trending higher, with New York cotton futures hovering between 91 and 93 American cents per pound. He cited the latest USDA weekly export and sales report, which showed that 95,700 bales were sold for the 2026-27 marketing year. Vietnam led the buying with 19,000 bales, followed by Guatemala with 14,400 bales and Bangladesh with 14,000 bales.
For the 2027-28 marketing year, sales stood at 39,600 bales, with Malaysia emerging as the top buyer at 30,800 bales, followed by Guatemala at 8,800 bales.
On the export side, total shipments reached 181,000 bales. Vietnam was the largest importer with 47,900 bales, followed by Pakistan with 35,300 bales and India with 18,800 bales.
Large-scale adulteration and corruption in cotton ginning factories have pushed the country’s textile industry to the brink of a major crisis, raising fears of a sharp decline in exports and growing dependence on imported cotton.
In several cities, particularly in Sindh’s Sanghar district, ginning factories are reportedly mixing large quantities of cotton waste into raw cotton. The practice intensified during the 2025-26 season after monitoring efforts were suspended in the wake of a criminal case filed against the monitoring committee team of the Pakistan Cotton Ginners Association (PCGA) in Tando Adam. Members of the raiding team were subsequently forced to seek bail from the Hyderabad bench of the Sindh High Court, a development that brought active monitoring to a halt.
The crisis has been compounded by internal collusion within the textile sector itself. Industry sources say laboratory staff at various textile mills were found working hand in glove with ginning factory owners, accepting bribes to certify waste-laden cotton bales as high quality. The resulting decline in quality has left mills with little choice but to turn increasingly to imported cotton.
In response, several mill owners have dismissed their entire laboratory teams and ordered fresh sampling of warehouse stocks in an effort to return adulterated cotton to suppliers. In one striking case earlier this week, a mill in Dera Ghazi Khan received two hundred bales containing such a high concentration of waste that representatives of the PCGA and the broker had to be formally summoned to verify the fraud.
Industry experts, including Cotton Ginners Forum Chairman Ehsanul Haq, have warned that a longstanding practice of concealing waste inside cotton bales, previously known as the “burger cotton” scheme, is compromising the quality standards required for internationally acceptable garments. With leading textile mills suspending their purchases of local cotton, prices of raw and seed cotton are expected to fall sharply in the near future. Experts have called for immediate disciplinary action against fraudulent factory owners in order to safeguard the country’s exports.
Separately, Gohar Ejaz, Patron-in-Chief of the All Pakistan Textile Mills Association (APTMA), said that boosting cotton production in Pakistan would require a reduction in sugarcane cultivation, stressing that cotton remains a critical need for the country.
Addressing a press conference in Lahore, Ejaz said Pakistan requires between 14 and 15 million bales of cotton every year, but current domestic production stands at only around 5 million bales.
He explained that sugarcane consumes far more water than cotton, and argued that reducing sugarcane cultivation was necessary to give cotton farming room to grow.
Ejaz noted that sugar mills had sprung up across the country’s cotton-growing belts and said he was tasking APTMA’s leadership with reviving Pakistan’s cotton crop.
He added that the textile sector continues to play a vital role in Pakistan’s economy, generating 19 billion dollars in exports despite ongoing challenges, while employing more than ten million people nationwide.
The APTMA Patron-in-Chief concluded that increasing domestic cotton production was essential for the future growth of Pakistan’s textile industry, and called on the government and industry stakeholders to work together to improve the sector.
Copyright Business Recorder, 2026