KARACHI: The cotton market had witnessed an upward trend in recent days, but bearish sentiment has now taken hold. Spot rates in the market have increased by 100 rupees per maund, creating mixed signals for traders and farmers.
The true extent of damage to the cotton crop caused by recent rains and devastating floods can only be assessed after floodwaters recede. However, preliminary reports indicate that the cotton crop is under severe pressure.
Ehsan-ul-Haq, Chairman of the Cotton Ginners Forum, revealed that crops have suffered damage in major cotton-producing regions of Punjab and Sindh. He further stated that the presence of viruses could further reduce per-acre yield, creating a concerning situation for the already affected cotton industry.
An important meeting regarding cotton crop recovery was held under the chairmanship of Deputy Prime Minister Senator Ishaq Dar. The meeting conducted a detailed review of the negative impacts of recent large-scale flooding on cotton production and potential disruptions in the supply chain.
Head Transfer of Technology Central Cotton Research Institute Multan Sajid Mahmood emphasized that Pakistan’s exports and economy are fundamentally based on cotton and its related textile chain. Therefore, damage to the cotton crop is concerning not only for farmers but for the entire national economy.
Considering the gravity of the situation, the Prime Minister has announced the implementation of an agricultural and climate emergency nationwide. This decision has been made to provide immediate assistance to affected farmers and ensure better preparation for the upcoming season.
In this situation, effective cooperation between the government, farmer organizations, and the private sector is essential to restore the cotton industry as quickly as possible and protect the national economy from further losses.
Chairman of the Cotton Ginners Forum, Ehsan-ul-Haq, stated that crops are under severe pressure. Major cotton-producing areas of Punjab and Sindh, including Bahawalpur, Multan, Bahawalpur, and Rahim Yar Khan, are either currently submerged or preparing for additional heavy rainfall.
Due to reduced raw cotton supply, several ginning factories and mills have been forced to suspend operations. Furthermore, preliminary reports have been received regarding a virus affecting various cotton varieties, which could further reduce per-acre yield.
In Sindh province, cotton prices are in between Rs 15,500 to Rs 16,000 rupees per maund based on quality, while the price of Phutti per 40-kilogram is in between Rs 6,000 to Rs 7,200.
In Punjab province, cotton prices remained in between Rs 15,800 to Rs 16,200 per maund. The rate of Balochi cotton is in between Rs 16,400 to 16,500 per maund, while the rate of Phutti is in between Rs 6,800 to Rs 7,400 per 40 kg.
In Balochistan province, the price of cotton is in between Rs 15,600 to Rs 15,800 per maund. The rate of Phutti is in between Rs 6,800 to Rs 7,300 per 40 kg. The rate of Balochi Phutti is in between Rs 8,000 to Rs 8,200 per 40 kg.
The Karachi Cotton Association’s Spot Rate Committee concluded trading with an increase of 100 rupees per maund, closing the spot rate at 15,800 rupees per maund.
According to Naseem Usman, Chairman of the Karachi Cotton Brokers Forum, international cotton prices remained stable during the trading period. New York cotton futures were quoted between 66.50 to 71.00 American cents per pound.
Based on the USDA’s weekly export and sales report, a total of 129,600 bales were sold for the 2025-26 season. Vietnam emerged as the leading buyer, purchasing 61,500 bales and securing the top position in cotton procurement. China followed in second place with purchases of 17,600 bales, while India ranked third by acquiring 13,800 bales. Pakistan occupied the fourth position among major buyers, purchasing 12,700 bales during this reporting period.
During this time, a meeting regarding cotton crops was held on Friday under the chairmanship of Deputy Prime Minister and Foreign Minister Senator Muhammad Ishaq Dar. According to a statement issued by the Deputy Prime Minister’s office, the meeting reviewed the impacts of recent large-scale floods on cotton production, potential shortages, and obstacles in the supply chain.
The meeting also discussed increasing production under the agricultural transformation project, providing better support to farmers, and boosting exports. The meeting was informed that challenges such as water shortage, climate change, quality seeds, pesticides, and outdated technology require immediate attention. The Deputy Prime Minister emphasized the need for climate-smart agriculture, investment in research, and stronger cooperation between government, industry, and farmers.
The meeting was attended by the Ministers of Food, Treasury and Commerce, Planning, Special Assistant to the Prime Minister Tariq Bajwa, along with the Secretary of Food, Industries, and officials from federal and provincial departments. This important meeting regarding essential cash crops was convened by Deputy Prime Minister and Foreign Minister Ishaq Dar, who chaired the session where important issues related to cotton were discussed.
On this occasion, Finance Minister Muhammad Aurangzeb, Federal Minister in the Ministry of National Food Security and Research Rana Tanveer Hussain, Planning Minister Ahsan Iqbal, Chairman NASDRA Rao Muhammad Asif Ali, and other important personalities participated.
The local cotton market witnessed overall stability in cotton prices during the past week due to rainfall across major cotton-producing areas of Sindh and Punjab provinces. Cotton prices experienced an increase of 200 to 300 rupees per maund initially.
The Karachi Cotton Association’s Spot Rate Committee had increased the spot rate by 100 rupees per maund, setting it at 15,800 rupees per maund. However, following the occurrence of rain-damaged cotton, prices subsequently declined by 200 to 300 rupees.
The exact extent of damage to cotton crops, particularly in Punjab province, will be accurately assessed after the floods subside. Currently, reports indicate that various crops including corn, rice, sugarcane, and cotton have suffered considerable losses due to the rainfall.
Cotton production was already declining to alarming levels, and this year’s rainfall and devastating floods are expected to cause additional significant damage, though it remains premature to make precise estimates at this time.
The Prime Minister has announced the implementation of an agricultural and climate emergency across the country.
The Delegation of Pakistan Cotton Ginners Association (PCGA) under the leadership of Chairman PCGA Dr. Jassu Mal Leemani met with honourable Rizwan Sheikh Ambassador to USA at Pakistan House, Washington DC. It was attended by Chairman Data Group, Anil Kumar Dewnani, Dr Kishore Kumar Dewnani, Director Jatlee Commodities Aakash Jai leemani and Director Unar Cotton, Mahesh Kumar.
In the meeting several issues were discussed such as ways on improving bilateral trade between the two countries. Major issues were discussed regarding the improvement of Cotton ginning, crop size and trade of other commodities between the two nations.
Rizwan Sheikh was optimistic in resolving and fostering trade ties between the two nations. Chairman PCGA and his delegation received great reception and recognition for their effort. Situation after floods in Pakistan and its impact on crop size of various commodities were also a part of the discussion. In the end Special prayers were offered for flood victims and solidarity of Pakistan.
Sajid Mahmood, Head of the Technology Transfer Department at the Central Cotton Research Institute (CCRI) Multan, in a telephonic conversation with renowned cotton analyst Naseem Usman, said that cotton and the textile chain built on it form the real foundation of Pakistan’s exports and national economy.
In contrast, sugarcane is a crop that consumes excessive water and survives on subsidies. Therefore, it is essential to enhance cotton production through better seed, modern research, and an integrated strategy so that the crop can regain its lost significance.
He further stated that when the cultivation of cotton and sugarcane is compared, the difference is quite clear. Sugarcane has always been more attractive for farmers because its price is pre-determined, guaranteed procurement exists, and financial facilities are also available. Cotton, on the other hand, has faced several hurdles such as weak research, lack of seed improvement, and persistent production challenges, due to which the crop has gradually declined.
Sajid Mahmood explained that the textile industry, instead of making substantial investments in seeds and research, relied largely on imports. On the other hand, research institutes, due to limited resources and delays in meeting modern requirements, were unable to perform to their full potential.
As a result, cotton’s per-acre yield could not show significant improvement. Despite water scarcity, sugarcane continued to be cultivated on a larger scale because farmers perceived its market and procurement as more secure.
He added that cotton and the textile chain built on it hold fundamental importance in Pakistan’s economy and are the real support for exports. In comparison, sugarcane not only consumes far more water but also depends heavily on subsidies. From this perspective, cotton’s importance is far greater.
In conclusion, Sajid Mahmood emphasized that the way forward is to take practical measures to enhance cotton production. Farmers should be provided access to quality seed and modern research, Integrated Pest Management (IPM) should be adopted to protect crops, and water policy should prioritize cotton.
Most importantly, farmers, research institutes, and the textile sector must work in close partnership so that cotton can once again reclaim its lost place and play a strong role in the national economy.
Copyright Business Recorder, 2025
