LAHORE: In an unprecedented growth in Pakistan’s historical past, native textile mills have begun large cotton imports from the US even earlier than the beginning of the brand new cotton ginning season, because the nation has just about run out of cotton shares, triggering a pointy surge in home cotton and phutti costs.
Reviews recommend that native textile mills have bought a unprecedented 206,100 bales – round 95pc – of the overall 216,000 bales of the US 2026-27 cotton crop bought in the course of the previous week. The millers are additionally importing cotton on a big scale from Brazil.
Throughout fiscal yr 2026-27, the nation could spend billions of {dollars} in overseas alternate on the import of cotton and edible oil, doubtlessly the very best import invoice within the nation’s historical past for these commodities.
Regardless of repeated bulletins concerning cotton revival, the approval of one other sugar mill in Rahim Yar Khan, Pakistan’s largest cotton-producing zone, is undermining efforts to revive cotton cultivation.
Sugar mills in cotton belt, different anti-cotton insurance policies among the many causes of manufacturing decline
The Karachi Cotton Affiliation (KCA), one of many two main establishments representing Pakistan’s cotton sector globally, is sealed since Dec 12, 2025 because of an alleged possession dispute, leaving the nation with out illustration in worldwide cotton markets.
One other worrying growth is the development of a gymkhana membership on the Central Cotton Analysis Institute (CCRI) lands, as soon as famend for growing the subcontinent’s first virus-free cotton selection.
Cotton Ginners Discussion board Chairman Ihsanul Haq says the Pakistan Cotton Ginners Affiliation (PCGA) has proposed abolition of gross sales tax on cotton, cottonseed, cottonseed oil, oil cake and oil grime within the upcoming federal funds. In the meantime, the All Pakistan Textile Mills Affiliation (APTMA) has sought the withdrawal of tremendous tax and different levies, alongside reductions in power tariffs and markup charges.
The textile trade additionally needs implementation of the cotton revival program finalized below the management of Deputy Prime Minister Ishaq Dar to extend cotton manufacturing and get rid of undocumented enterprise practices within the cotton sector.
The brand new cotton yr has began with record-high costs throughout the cotton worth chain. Cotton costs have climbed to Rs23,000 per maund, phutti to Rs12,500 per 40kg, cottonseed to Rs5,200 per maund and oil cake to Rs4,800 per maund – all historic highs in Pakistan.
Nonetheless, market observers consider costs could start easing after Eidul Azha holidays as numerous ginning factories in Punjab and Sindh are anticipated to turn out to be operational.
The partial arrivals of imported cotton have resumed after extended disruption attributable to the Gulf battle. Reviews of enhancing Iran-US relations and Chinese language mediation in easing Pakistan-Afghanistan tensions may reopen the Afghan border, doubtlessly permitting round 300,000 cotton bales from Afghanistan into Pakistan.
Printed in Daybreak, Could twenty fifth, 2026
