Cotton prices fall sharply in both global and local markets as a strong downward trend continued during the Eid-ul-Adha holidays, creating fresh concerns for Pakistan’s cotton and textile sectors. Industry experts say falling international cotton prices, changing trade policies, and rising production costs are putting additional pressure on local growers, ginners, and textile manufacturers.
Market analysts believe the current decline could continue in the coming weeks, affecting the overall performance of Pakistan’s cotton value chain.
📉 Cotton and Phutti Prices Record Major Decline
According to industry sources, cotton and phutti prices witnessed a significant decrease during the Eid holidays despite earlier expectations of market stability.
In Sindh, cotton prices reportedly declined by around Rs2,000 per maund, reaching approximately Rs21,000 per maund. In Punjab, prices dropped by nearly Rs1,000 per maund to around Rs22,000 per maund.
Similarly, phutti prices reportedly fell by approximately Rs1,500 per 40 kilograms, reaching nearly Rs10,500.
Experts say this sharp decline reflects both international market pressures and weak domestic demand.
🌍 Global Cotton Market Remains Under Pressure
International cotton markets have also experienced notable weakness over recent weeks.
Industry observers reported that global cotton prices dropped by nearly 10 cents per pound in major trading markets, creating a negative impact on cotton-producing countries including Pakistan.
Analysts believe lower international demand and changing trade dynamics have contributed to the ongoing downward trend.
The decline in global prices has directly influenced local cotton markets, resulting in reduced purchasing activity and weaker market sentiment.
🇮🇳 India’s New Import Policy Creates Market Shift
A major factor influencing regional cotton trade is India’s decision to remove duties and taxes on cotton imports from June 1 to October 31.
Experts believe the move could significantly strengthen India’s textile exports, particularly cotton yarn shipments to China.
Industry reports suggest Chinese demand for Indian cotton yarn has increased substantially during recent months, creating new opportunities for Indian exporters.
Market analysts say the policy change may improve India’s competitiveness in international textile markets.
🇵🇰 Pakistan Remains Largest Buyer of US Cotton
Despite local market weakness, Pakistan continued to be the largest importer of US cotton for the second consecutive week.
Industry figures indicate that Pakistan purchased more than 68,000 bales from the United States during the latest reporting period.
Experts say local textile mills are increasingly relying on imported cotton due to limited domestic stocks and quality requirements for export-oriented production.
Cotton imports from Brazil have also increased as mills seek alternative supply sources.
🏭 Textile Industry Faces Growing Challenges
Industry representatives argue that Pakistan’s textile sector continues to face significant challenges, including high energy costs, taxes, financing expenses, and operational difficulties.
According to industry estimates, only a limited number of cotton ginning factories and textile mills are currently operating at full capacity.
Many businesses have reportedly reduced production levels due to rising costs and weaker profitability.
Analysts warn that continued pressure could affect industrial output and export performance.
⚡ High Energy Costs Impact Competitiveness
Business leaders say electricity tariffs, gas prices, financing costs, and additional taxation have reduced the competitiveness of Pakistan’s textile industry.
Exporters argue that regional competitors are benefiting from lower production costs and supportive government policies.
Industry associations have repeatedly called for measures aimed at reducing operational expenses and improving export competitiveness.
Experts believe lower production costs could help strengthen Pakistan’s position in global textile markets.
📦 Export Sector Seeks Budget Relief
Exporters have urged the federal government to introduce supportive measures in the upcoming budget.
Industry stakeholders are requesting tax reforms, lower energy costs, and policies designed to encourage investment and exports.
Business groups also want the government to maintain export-friendly taxation mechanisms that could help increase foreign exchange earnings.
Economic analysts say the textile sector remains one of Pakistan’s most important export industries and plays a critical role in employment generation.
🌱 Future Outlook Remains Uncertain
Market experts believe cotton prices may remain under pressure in the near term due to weak international trends and ongoing domestic challenges.
However, future demand from textile manufacturers and developments in global trade could influence market direction later in the year.
Industry observers stress the importance of supportive policies, improved productivity, and investment in the cotton sector to ensure long-term sustainability.
As global competition intensifies, Pakistan’s cotton and textile industries continue searching for ways to improve efficiency and strengthen export performance.