KARACHI: Cotton markets are experiencing an interesting situation with mixed price trends across different regions of Pakistan. The cotton sector faces varying conditions between provinces, with Sindh experiencing a downturn due to rain-damaged cotton while Punjab shows bullish momentum.
Concerns are mounting in Punjab as rainfall and flooding threaten cotton crops in several areas. Some regions have already witnessed significant damage to their cotton harvest. Reports indicate that cotton crops in Bahawal Nagar district have suffered losses due to recent rains and adverse weather conditions.
Market dynamics reflect these regional variations, with spot rates declining by Rs 200. The price adjustment comes as traders assess the impact of weather-related crop damage across key cotton-producing areas.
In Sindh province, cotton production has shown improvement due to rainfall, though market participants warn that excessive rains and potential flooding could reverse these gains and cause substantial damage to the standing crop.
Tensions have emerged within the cotton trading community as Punjab ginners have raised objections against the Karachi Cotton Association’s spot rate committee decisions. This dispute highlights the ongoing challenges in establishing fair pricing mechanisms across different regions.
The cotton industry received attention at the highest levels when Prime Minister Shehbaz Sharif took notice of the concerning decline in cotton production. Khwaja Muhammad Zubair, Chairman of the Karachi Cotton Association, expressed gratitude for the Prime Minister’s intervention in addressing the sector’s challenges.
To address data accuracy issues, authorities have decided to implement satellite technology for obtaining precise statistics on cotton and other crops. This initiative, announced by Ehsan ul Haq, Chairman of the Ginners Forum, aims to provide more reliable production estimates.
Industry experts acknowledge that while hybrid seed technology has delivered remarkable results in various crops, the situation with cotton remains different and challenging.
Head Transfer of Technology Central Cotton Research Institute Multan Sajid Mahmood noted that despite technological advances in other agricultural sectors, cotton continues to face unique production and yield issues that require targeted solutions.
The cotton sector’s current state reflects broader agricultural challenges as Pakistan’s farming community grapples with climate variability, technological adoption, and market uncertainties that continue to impact one of the country’s most important cash crops.
The local cotton market witnessed mixed price trends during the past week, presenting an interesting situation for the commodity. In Sindh province, cotton prices declined by 300 to 400 rupees per maund due to the emergence of rain-damaged cotton, with current rates ranging between 15,700 to 16,100 rupees per maund.
Meanwhile, Punjab province experienced a contrasting trend as mills increased their cotton purchases from Punjab’s ginning factories due to the superior quality of cotton available in the region. This increased demand resulted in a price surge of 200 to 300 rupees per maund in Punjab, where cotton prices now range from 16,300 to 16,600 rupees per maund depending on quality.
The Karachi Cotton Association’s spot rates decreased by 200 rupees per maund during this period. Industry sources suggest that the Karachi Cotton Association’s spot rate committee appears to be overlooking Punjab’s cotton rates when determining prices. Since spot rates are typically calculated through averaging cotton prices, it seems the committee is not giving adequate consideration to Punjab’s cotton rates, according to complaints from Punjab’s ginners.
This disparity in regional price consideration has raised concerns among Punjab cotton producers who feel their market rates are being undervalued in the national pricing mechanism.
According to reports, authorities have decided to implement satellite technology to obtain accurate crop statistics. This technology will enable the collection of precise cotton production data and is expected to be operational from 2026.
A dispute is currently ongoing between the Pakistan Central Cotton Committee (PCCA) and the Punjab Crop Reporting Service regarding cotton production statistics, particularly concerning Punjab province’s cotton output figures.
In Sindh province, cotton quality has been affected due to rain damage, resulting in cotton prices ranging from 15,700 to 16,100 rupees per maund based on quality standards. The price of Phutti has remained in between 5,600 to 7,200 rupees per 40 kilograms.
In Punjab province, cotton prices are ranging from 16,300 to 16,600 rupees per maund, while damaged cotton prices are between 6,000 to 7,200 rupees.
The Karachi Cotton Association’s Spot Rate Committee has reduced the spot rate by 200 rupees per maund, closing the spot rate at 16,000 rupees per maund.
According to Naseem Usman, Chairman of the Karachi Cotton Brokers Forum, cotton prices have experienced an overall bearish trend in the international cotton market. New York cotton futures prices ranged between 66.50 to 69.00 American cents per pound during the trading period.
The USDA’s weekly export and sales report revealed that 179,300 bales were sold for the 2025-26 season. Vietnam emerged as the leading purchaser, acquiring 88,400 bales to top the list of buyers. Bangladesh secured the second position by purchasing 37,800 bales, while Pakistan ranked third with purchases of 13,300 bales.
The weekly trading data reflects the current dynamics of the global cotton market, with Asian countries maintaining their position as major importers of American cotton despite the prevailing downward price trend.
First time in the country’s history the Special Investment Facilitation Council (SIFC) has decided to launch a satellite-based program starting in 2026 to obtain completely accurate data on crop cultivation, particularly cotton, through cooperation with China and the Land Information and Management System (LIMS). This initiative is expected to provide stakeholders with precise cultivation statistics for all crops, enabling them to formulate comprehensive strategies.
Chairman of the Cotton Growers Forum, Ehsan ul Haq, explained that crop cultivation statistics in Pakistan have always remained controversial, making it challenging for stakeholders and government circles to develop strategies regarding import and export requirements to meet national needs. However, the implementation of this system from 2026 is expected to permanently resolve this longstanding issue.
He further revealed that following the resolution of the dispute between All Pakistan Textile Mills Association (APTMA) and the Pakistan Central Cotton Committee (PCCC) regarding billions of rupees in stuck funds from textile mills, APTMA has expressed interest in taking control of PCCC during a recent important meeting on cotton revival chaired by Deputy Prime Minister Mohammad Ishaq Dar.
According to reports, PCCC has also indicated its consent to this arrangement. If this materializes, direct management of PCCC by APTMA is expected to accelerate cotton research in Pakistan significantly, leading to the development of new cotton varieties with higher yields and better resistance to adverse weather conditions, ultimately resulting in substantial increases in per-acre cotton production in Pakistan.
He noted that during the past week, rainfall in most of Pakistan’s cotton zones caused limited availability of quality cotton, leading to an upward trend in cotton prices. Cotton prices increased by 200 to 300 rupees per maund, reaching 16,400 to 16,600 rupees per maund. However, if the continuous decline in the dollar’s value against the rupee accelerates, this could further drive up cotton prices.
Khawaja M Zubair, Chairman, The Karachi Cotton Association extended his deep thanks to the Prime Minister of Pakistan Mian Mohammad Shahbaz Shareef, to express his concern over the collapse of the country’s once-thriving cotton industry in the recent ceremony held at Islamabad.
He appreciated the desire of Honorable Prime Minister of Pakistan to make urgent national effort to revive the cotton sector that has seen output plummet from 14.0 million bales to just 4.0 million bales in recent year.
He also appreciated the vision of the Honorable Prime Minister of Pakistan towards the urgent need to modernize the Cotton Sector to address declining productivity and unlock its vast potential particularly in cotton, which is backbone of our country’s economy.
Chairman, The KCA hoped that under the able leadership and guidance of Honorable Prime Minister of Pakistan, the Government would identify the main causes of decline in cotton production and make all efforts in all directions to increase cotton production on war footing basis to meet the requirement of local textile industry and leave surplus for exports to earn much needed foreign exchange for the country. It would also help to avoid import of cotton from abroad and save the foreign exchange of the country.
Chairman, The KCA assured full support of The Karachi Cotton Association to the Government at all time to achieve the desired results.
Sajid Mahmood, Head of the Technology Transfer Department at the Central Cotton Research Institute (CCRI), Multan, in a telephonic discussion with renowned cotton analyst Naseem Usman, observed that hybrid seed technology has achieved significant success in many crops globally. In maize and vegetables, for instance, the adoption of hybrids has led to yield gains of 30 to 40 percent. However, the situation with cotton in Pakistan is notably different, as cultivation still relies predominantly on BT varieties, while the use of hybrid cotton remains at a limited scale.
Citing research and field trials, Mahmood explained that with improved agro-management practices—such as balanced fertilizer use, efficient irrigation and integrated pest management—hybrid cotton has the potential to deliver yield increases of 10 to 20 percent. Nevertheless, he pointed out that Pakistan’s cotton crop is constrained by formidable challenges, including climate change, Cotton Leaf Curl Virus (CLCV), water scarcity and widespread disease pressures.
He welcomed the government’s policy of permitting the import of hybrid seeds and promoting experimental work in this area, noting that such initiatives underscore agriculture and cotton revival as policy priorities. He further remarked that ongoing efforts to engage research institutions and revitalize the cotton sector are commendable and lay the groundwork for sustainable productivity. However, he stressed the importance of developing hybrid seeds locally, through national research organizations, to ensure adaptability to Pakistan’s agro-climatic conditions and resilience against indigenous pests and diseases.
Sajid Mahmood cautioned that while hybrid technology can contribute meaningfully to productivity gains, it should not be viewed as a “miracle solution.” Its effectiveness depends on complementary measures, including balanced agricultural policies, affordable inputs for farmers, and the adoption of climate-smart agricultural practices. He added that the positive results achieved in India and China were possible due to stronger agricultural infrastructure and reliable water availability. In Pakistan, too, hybrid technology can succeed if integrated with water-saving techniques, modern mechanization, and effective disease-control strategies.
Copyright Business Recorder, 2025
