KARACHI: Cotton prices remained stable in the local market, though trading volume saw a significant decline.
Experts; however, warn that the cotton crop is currently facing severe water shortages, requiring immediate attention. Sources indicate that water scarcity is causing major disruptions in the ongoing sowing of cotton crops.
However, the government has announced the immediate closure of 392 companies supplying substandard seeds, following special directives from the Prime Minister.
CM approves Rs2.5bn for early cotton cultivation
Head Transfer of Technology Central Cotton Research Institute Multan Sajid Mahmood said that in a key move to boost cotton production, the government has decided to import high-quality seeds from Brazil and China.
Meanwhile, APTMA and FPCCI have intensified efforts to provide the facility of Export Financing Scheme (EFS) at the local level to ensure financial support for farmers.
The local cotton market stabilised last week after a decline in cotton prices. Textile mills are showing more interest in imported cotton, while cotton yarn and fabrics are also being imported in large quantities.
APTMA and FPCCI continue to appeal for the immediate restoration of the EFS facility locally, but the government is persistently delaying.
FPCCI Patron-in-Chief S M Tanveer stated in a statement that the EFS should be abolished immediately. Using strong words, he said the EFS is proving to be an “Export Fraud Scheme” and must be terminated at once, as it is being misused.
According to reports, the early sowing of cotton is being affected due to water shortages. APTMA claims that the textile sector is severely impacted due to extremely high energy costs and the absence of the EFS facility locally. Forty percent of industries have already shut down, while some mills are operating partially. If no positive changes occur, the situation will worsen further.
To revive cotton production, Prime Minister Shehbaz Sharif has formed a special committee. Recommendations will be prepared and presented to the Prime Minister.
To increase cotton production, a decision has been made to import high-quality seeds from Brazil and China. Experts say that importing quality seeds can boost cotton yields. The government urgently needs to take immediate action on this matter.
In Sindh, the price of cotton ranged between Rs16,000 to Rs 17,000 per maund depending on quality and payment conditions, while in Punjab, rates remained between Rs 16,500 to Rs 17,300 per maund. The spot rate committee of the Karachi Cotton Association maintained the spot rate at Rs 16,800 per maund.
Naseem Usman, Chairman of the Karachi Cotton Brokers Forum, reported mixed trends in international cotton prices.
New York cotton futures traded between 65.50 to 67.50 cents per pound. According to the USDA’s weekly export and sales report, 84,400 bales were sold for the 2024-25 season, with Pakistan leading purchases at 35,300 bales. Vietnam followed with 18,900 bales, while Turkey secured the third position with 16,900 bales.
For the 2025-26 season, 41,600 bales were sold, with Malaysia topping the list at 17,600 bales. Thailand came in second with 12,300 bales, and Honduras ranked third with 7,500 bales.
Meanwhile, Sajid Mahmood, Head of the Technology Transfer Department at the Central Cotton Research Institute (CCRI) Multan told cotton analyst Naseem Usman the drastic drop in water levels in dams has made water availability a major challenge for the cotton crop.
He mentioned that the primary challenges facing cotton cultivation in Pakistan include severe water shortages, climate change, and inconsistent policies. Currently, water reserves in the country’s major dams have reached “dead level,” leading to acute shortages of canal water in various districts of Sindh, particularly Sanghar, Mirpurkhas, Umerkot, Tando Allahyar, Matiari, Hyderabad, and Badin. This could negatively impact cotton production.
Sajid Mahmood further shared that, according to the latest data from the Crop Reporting Service Department regarding early cotton cultivation in Punjab, the target was set at 1 million acres, but sowing has only been completed on 419,000 acres, which is 41.9% of the total target. He expressed concern that the unusual water shortage at the start of the Kharif season could further affect cotton production.
He emphasized the urgent need for comprehensive measures to address the cotton crisis. First and foremost, fair management and distribution of water resources must be ensured so that farmers have access to the water needed for their crops.
Additionally, investment in agricultural research should be increased to introduce seed varieties that can yield better produce even with less water. “The current water shortage for cotton production is becoming a serious issue. If not addressed promptly, Pakistan’s cotton output may decline further, severely damaging the local textile industry and negatively impacting the national economy,” warned Sajid Mahmood.
He urged the government, agricultural experts, and all industry stakeholders to develop a coordinated strategy to tackle the challenges facing the cotton sector and prevent further harm to the country’s agricultural economy.
Copyright Business Recorder, 2025
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