By Ata Ur Rahmen 
Cotton Prices in Pakistan Decline Rs500 per Maund
Cotton prices in Pakistan witnessed a significant drop this week, falling by Rs500 per maund to around Rs15,500. Analysts link this sharp decline to weak global demand and increased domestic production, which have flooded the market and created downward price pressure.
According to the Cotton Ginners Forum, the situation has affected the entire textile and ginning industry, disrupting Pakistan’s largest export-oriented sector. The continuous fall in cotton prices in Pakistan is also being mirrored in global markets, where overall consumption remains sluggish.
Textile Sector Faces Mounting Financial Pressure
Forum Chairman Ehsan-ul-Haq stated that the crisis is deepening due to high energy tariffs, elevated interest rates, and reduced export orders. These factors have significantly weakened Pakistan’s textile competitiveness in international markets. Many small and medium-sized ginning factories have temporarily suspended operations due to unsustainable production costs.
He emphasized that instead of allocating over Rs600 billion annually to the Benazir Income Support Programme (BISP), the government should focus on supporting industrial production and export sectors. He added that if the cotton industry continues to struggle, it could have a ripple effect on employment, exports, and rural incomes.
Cotton Arrivals Increase by 40%, Intensifying Price Pressure
Latest figures from the Pakistan Cotton Ginners Association (PCGA) show a 40% increase in cotton arrivals as of September 30 compared to the same period last year. This surge in production has further driven prices downward, with expectations of continued arrivals in the next two weeks.
In Sindh, cotton prices ranged between Rs14,800 and Rs15,300 per maund, while in Punjab, they stood between Rs14,750 and Rs15,300. The Karachi Cotton Association (KCA) also reduced its official spot rate by Rs500, bringing it to Rs15,100 per maund.
Experts say that despite higher yields, farmers are earning less profit due to falling prices and rising input costs, which include fertilizers, pesticides, and electricity.
Global Market Trends Affecting Cotton Prices in Pakistan
The downturn in cotton prices in Pakistan is also being influenced by international market conditions. Cotton futures in New York traded between 63.84 and 68.10 cents per pound, indicating weak demand from global textile manufacturers.
Industry experts warn that unless international consumption improves and domestic production costs decline, Pakistan’s cotton sector will continue to face volatility. They urge policymakers to offer export incentives, reduce energy tariffs, and improve access to financing to help stabilize cotton prices in Pakistan and strengthen the overall textile value chain.
Policy Support Crucial for Market Stability
The ongoing decline in cotton prices in Pakistan underscores the need for long-term policy reforms. Stakeholders suggest a comprehensive strategy that includes cost reduction for manufacturers, modernization of ginning units, and promotion of value-added textile exports.
If global demand recovers and local industries receive government backing, experts believe the cotton market can regain balance in the coming months. For now, however, the combination of oversupply and weak exports continues to challenge one of Pakistan’s most vital economic sectors.
Stay Connected With AsalPakistan to get more updates and news.
admin