Cotton Prices Fall Sharply As Global Market Weakness Hits Local Trade
- Cotton prices in Sindh fell by Rs2,000 per maund, while Punjab recorded a decline of Rs1,000 per maund.
- Phutti prices dropped by Rs1,500 per maund amid fears of further declines.
- Falling international cotton rates and tax-related concerns are putting pressure on the domestic market.
Cotton prices witnessed a significant decline across Pakistan on Monday as weakness in international markets continued to affect local trading activity and sentiment.
According to market data, cotton prices in Sindh dropped by Rs2,000 per maund, bringing the rate down to Rs21,000 per maund. In Punjab, cotton prices fell by Rs1,000 per maund and were recorded at Rs22,000 per maund.
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Phutti prices also came under pressure, declining by Rs1,500 per maund to Rs10,500 per 40 kilograms. Market experts warned that prices could face additional downward pressure in the coming days if global trends continue.
Chairman of the Cotton Ginners Forum, Ihsanul Haq, said the price difference between Punjab and Sindh has widened due to a new tax imposed on the transportation of cotton and phutti from Sindh into Punjab. According to him, the additional levy has increased the cost of cotton in Punjab, creating a noticeable gap between prices in the two provinces.
The local market downturn follows a sharp decline in global cotton prices. International cotton rates have reportedly fallen by nearly 10 cents per pound over the past few days, reducing buying interest and adding pressure on domestic prices.
Despite the decline in local rates, Pakistan’s textile sector continues to depend heavily on imported cotton due to limited domestic supplies and lower stock levels.
Recent trade data shows that Pakistan remained the largest buyer of US cotton during the latest reporting week. Out of the 112,000 bales sold by the United States, Pakistani buyers purchased 68,030 bales, reflecting the country’s strong import demand.
In addition to imports from the United States, Pakistani textile mills are also sourcing significant quantities of cotton from Brazil to meet industrial requirements.
Meanwhile, India has introduced a major policy change aimed at supporting its textile industry. Industry observers described the move as business-friendly after the Indian government abolished all taxes and duties on imported cotton from June 1 through October 31.
The decision includes the removal of the cumulative 11 percent import duty as well as the Agriculture Infrastructure and Development Cess, making imported cotton more affordable for Indian textile manufacturers.
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