KARACHI: Textile mills in the country have halted their purchasing activities following a remarkable 49 percent increase in cotton production. The market witnessed an atmosphere of uncertainty after the release of the positive production report.
According to the latest statistics, cotton production in Punjab province has recorded an increase of 56.37 percent, while Sindh province has registered a growth of 45.29 percent. However, cotton prices remained stable before the report’s publication, though improvement was observed in lint prices.
Due to mills limiting their purchases, market trading volume has experienced a notable decline. Traders indicate that buyers have adopted a cautious approach following the increase shown in the production report.
Chairman Pakistan Cotton Ginners Forum Ehsan-ul-Haq stated that no cotton plan can succeed until crop zoning laws are fully implemented. He emphasized that strict compliance with regulations is essential for the revival of the cotton industry.
The Pakistan Textile Council has expressed serious concern over the significant decrease in national exports and the closure of international companies. Council officials stated that the current situation is worrying for the textile industry.
Head Transfer of Technology Central Cotton Research Institute Multan Sajid Mahmood said that according to a report from the Pakistan Cotton Ginners Association despite floods, rains, and other challenges, positive prospects exist for cotton production. He expressed hope that further improvement in production is expected if weather conditions remain favourable.
According to the latest report of the Pakistan Cotton Ginners Association (PCGA), cotton arrivals up to September 30, 2025 have been significantly higher compared to last year, indicating that this season’s cotton production is moving in a positive direction. By this period, nationwide arrivals stood at 3,044,409 bales compared to 2,039,983 bales last year, showing an increase of nearly 49 percent. It is worth noting that at the beginning of the season there were concerns about lower production, but the current report has dispelled those apprehensions. With changing conditions the crop has improved and future production prospects are trending positively.
In Punjab cotton arrivals reached 1,136,439 bales which is 56 percent higher than last year, while Sindh recorded 1,907,970 bales reflecting a 45 percent increase. Balochistan also contributed 112,900 bales indicating balanced progress across all major cotton growing regions.
The local cotton market experienced a dominant bullish trend during the past week ahead of the CGA report release, with spot rates increasing by 100 rupees per maund. The rise in cotton prices is attributed to an increase in seed cotton rates, as cotton growers have raised seed cotton prices by 300 to 500 rupees per 40 kilograms, prompting ginners to demand higher cotton prices as well. Meanwhile, mills are exercising caution in their purchasing at elevated prices.
On another front, imported cotton prices are under pressure, but mills are showing greater interest in locally produced cotton. If seed cotton prices continue to rise and farmers receive fair rates for their produce, growers are expected to take relatively greater interest in cotton cultivation in the upcoming season. Sources indicate that if cultivators obtain reasonable prices for seed cotton, they will predominantly grow cotton in the next season, which would be beneficial for the country’s economy. Farmers have become disillusioned with cotton crops due to inadequate seed cotton prices in recent times.
Regarding the cotton roadmap for the upcoming season, various opinions are being discussed. In a statement, Ehsan-ul-Haq, Chairman of the Pakistan Cotton Ginners Forum, emphasized that the most crucial element for cotton revival, higher per-acre production, and better quality of cotton and seed is the immediate implementation of crop zoning laws. This would impose a complete ban on sugarcane cultivation in cotton zones, without which cotton revival remains impossible. However, surprisingly, this aspect has not been mentioned in the cotton plan.
He pointed out that everyone is aware of how expensive cotton and the cotton seed produced in areas of Balochistan and Cholistan, where sugarcane is not cultivated, are sold in the market. The sole reason for this premium is their superior quality. He believes that no cotton plan can succeed until crop zoning laws are implemented.
Cotton prices varied across different provinces of Pakistan based on quality, with the Karachi Cotton Association implementing a notable increase in spot rates.
In Sindh province, cotton prices ranged from Rs. 15,600 to Rs. 16,000 per maund depending on quality, while cottonseed (phutti) was priced between Rs. 6,800 and Rs 7,600 per 40 kilograms.
Punjab province saw cotton prices ranging from Rs. 15,800 to Rs. 16,200 per maund, with cottonseed prices varying more widely from Rs. 6,600 to Rs. 8,300 per 40 kilograms.
In Balochistan province, cotton was priced between Rs. 15,600 and Rs. 16,200 per maund, while cottonseed ranged from Rs. 6,800 to Rs. 7,900 per 40 kilograms. Balochi cottonseed specifically was priced higher at Rs. 8,200 to Rs. 9,000, while Balochi cotton commanded prices between Rs. 16,000 and Rs. 16,500 per maund. Prime quality cotton was priced at the premium end, ranging from Rs. 16,700 to Rs. 17,300 per maund.
Prices for cottonseed cake and oil remained stable during this period.
The Karachi Cotton Association’s Spot Rate Committee announced an increase of Rs. 100 per maund, closing the spot rate at Rs. 15,600 per maund.
Naseem Usman, Chairman of the Karachi Cotton Brokers Forum, reported that international cotton prices remained generally stable. New York cotton futures were trading between 65.30 and 69.58 American cents per pound. Due to the United States government shutdown, the USDA was unable to publish its weekly export and sales report.
According to the latest report from the Pakistan Cotton Ginners Association (PCGA), cotton arrivals up to September 30, 2025, have been significantly higher compared to the previous year, reflecting improved production during the current season. Total cotton arrivals across the country during this period have been recorded at 3,044,409 bales, representing an increase of approximately 49 percent compared to 2,039,983 bales during the same period last year.
In this regard, Sajid Mahmood, Head of the Transfer of Technology Department at the Central Cotton Research Institute Multan, spoke in a telephonic conversation with renowned cotton analyst Naseem Usman. He stated that it is noteworthy that at the beginning of the season, there was an impression of lower production levels. However, the latest statistics have negated these concerns. With the changing situation, improvement has come to the crop, and the prospects for future production are taking a positive direction.
According to the PCGA report, cotton arrivals in Punjab have reached 1,136,439 bales, which is 56 percent higher than the previous year, while in Sindh, this number has reached 1,907,970 bales, showing a 45 percent increase. Balochistan has also recorded 112,900 bales during this period.
Sajid Mahmood said that the export front has also remained encouraging. During this period 94,800 bales were exported compared to only 400 bales last year, a remarkable rise. Similarly, textile mills have so far received 2,409,678 bales which is 30 percent higher than last year. Current stocks stand at 539,931 bales, more than three times higher compared to the previous year, showing that not only domestic requirements are being met but export opportunities are also expanding. Particularly noteworthy is that in the last 15 days 1,040,000 bales have arrived, 72 percent higher than the same period last year. This accelerated inflow has significantly boosted ginning activity, with 501 factories now operational nationwide compared to 392 last year. The largest increase has been observed in Punjab where 265 factories are currently running.
Copyright Business Recorder, 2025
