Cotton Market in Pakistan Sees Stability amidst Rising Business Activity

After Muharram holidays, trading in the market resumed and this saw the local cotton market in Pakistan maintain stability.

This is despite the challenges related to crop quality because of the recent rainfall. Business activity has also experienced a significant increase.

It is primarily driven by textile mills, which have shown greater interest in purchasing cotton.

Cotton Prices

The cotton prices are somewhere in the range of Rs 17,800 to Rs 18,300 for one maund in the province of Sindh. Meanwhile, the prices per maund range from Rs 18,900 to Rs 19,100 in the province of Punjab.

Likewise, the prices of cotton seeds (phutti) in Sindh are somewhere between Rs 7,400 and Rs 8,200 for every 40 kg. In Punjab, these prices are between Rs 7,800 and Rs 8,500 per 40 kg.

The prices in Balochistan are similar to those recorded in Sindh and Punjab. However, it should be noted that there is significant financial strain in the market.

The textile industry has continued to voice concerns about the sky-high energy costs. They have also criticized the substantial payments made to Independent Power Producers (IPPs).

Even though there have been calls for government intervention, there have yet to be any concrete steps taken.

The Rainfall

Meanwhile, there has been a mixed impact of widespread rainfall on cotton crops in different regions. While rainfall is initially beneficial, there could be a negative impact on yields due to excessive rainfall.

Moreover, farmers are also increasingly concerned about the rising cost of cultivation combined with stagnant prices of cotton seeds.

This could prove to be an obstacle in future investments in cotton farming, which could have an impact on the overall production targets.

To reflect the current market trends, the Spot Rate Committee of The Karachi Cotton Association has opted to set the spot rate at Rs 18,000 per maund.

As far as the global cotton market is concerned, it has remained stable. The New York cotton futures recorded a fluctuation between $0.70 and $0.73 per pound.

The Data

According to the recent export statistics, sales of 27,200 bales were recorded in the 2023 to 2024 period. The leading buyer was none other than Vietnam, with China and Pakistan taking the second and third spot.

For the 2024 to 2025 period, sales of 165,000 bales have already been recorded, with the largest share from China.

As of July 15^th of this year, the amount of seed cotton bales distributed amongst ginning factories in Pakistan was 442,041.

A total of 327,666 bales were given to Sindh, while Punjab received about 114,375 bales.

The highest share was distributed in the Sanghar district of Sindh, which was about 263,282 bales. Meanwhile, Balochistan also received about 11,200 bales.

Out of the total, 395,695 bales have already been processed. About 374,889 bales have been bought by the textile sector, while the number of unsold bales is currently 67,152.

The Trading Corporation of Pakistan (TCP) has not initiated procurement of cotton for the current year as yet.

As compared to previous years, cotton sowing has experienced delays. This is mostly due to the heat damage to cotton flowers.