Market witnesses significant improvement in prices

NASEEM USMAN

KARACHI: The cotton market is witnessing a positive trend with significant improvement recorded in cotton prices. Market experts report that bullish sentiment dominates cotton rates, resulting in a Rs 200 increase in spot rates.

The Ministry of National Food Security and Research (MNFSR) presented detailed crop damage assessments to the Senate Standing Committee meeting. According to the official report in Punjab Province Cotton crops suffered damage across 162,000 acres while in Sindh Province Cotton crops were affected on 57,552 acres.

These losses have occurred due to climate change and other factors that are negatively impacting cotton production across the country.

Head Transfer of Technology Central Cotton Research Institute Multan Sajid Mahmood commented on the situation, stating that “Pakistan’s real gold lies not underground but in its fields and industries.” He emphasized the critical importance of the agricultural sector, describing cotton as a vital pillar of Pakistan’s economy.

Trading circles indicate that cotton prices are expected to rise further due to supply shortages. The Rs 200 increase in spot rates signals sustained market demand for cotton despite production challenges.

Cotton prices in the local market experienced an overall upward trend during the past week. The supply of rain-damaged cotton that was available after the recent rains has now virtually ended, and better quality cotton is entering the market at relatively higher prices, which has driven cotton rates upward by 300 to 400 rupees per maund. The Karachi Cotton Association’s Spot Rate Committee has also increased spot rates by 200 rupees per maund.

Sindh province witnessed better cotton prices due to superior quality, while most areas in Punjab also recorded price increases. Balochi cotton rates also showed an upward trend. The exact extent of damage to cotton crops in flood-affected areas of Punjab has not yet been fully assessed.

According to the Pakistan Cotton Ginners Association’s production report up to September 15, cotton production showed a 40 percent increase compared to the same period last year. Initially, mills had reduced their purchasing due to this higher production volume, but subsequently increased buying to secure better quality cotton, which contributed to the improvement in cotton prices.

Due to better cotton quality and reasonable pricing, mills have shown greater interest in local cotton rather than imported cotton. The combination of improved quality and fair pricing has made domestic cotton more attractive to textile manufacturers, further supporting the upward price momentum in the local cotton market.

The Ministry of National Food Security and Research (MNFSR) revealed in a Senate Standing Committee meeting that cotton crops have suffered significant damage across Pakistan’s major cotton-producing provinces.

Cotton crops sustained damage across 162,000 acres in Punjab province and 57,552 acres in Sindh province, according to official reports presented to the committee.

Cotton prices in Sindh reached Rs. 15,500 to Rs. 16,000 per maund following an increase of Rs. 300 to Rs. 400 per maund, depending on quality and payment conditions. The price of Phutti is in between Rs. 7,000 to Rs. 7,500 per 40 kilograms after a similar increase of Rs. 300 to Rs. 400.

Cotton prices in Punjab were recorded at Rs. 15,400 to Rs. 16,200 per maund, while the rate of Phutti is in between Rs. 6,500 to Rs. 8,000 per 40 kilograms.

Cotton prices in Balochistan remained between Rs. 15,500 to Rs. 16,000 per maund. The rate of Phutti is in between Rs. 6,800 to Rs. 7,700 per 40 kilograms.

The Premium quality Balochi cotton price is in between Rs. 16,500 to Rs. 16,600 per maund, while the rate of Phutti is in between Rs. 8,000 to Rs. 8,400 per 40 kilograms.

Cotton seed cake (banola) and oil cake (khal) prices also showed relatively better performance in the market.

The Karachi Cotton Association’s Spot Rate Committee increased the spot rate by Rs. 200 per maund, closing trading at Rs. 15,500 per maund.

According to Naseem Usman, Chairman of the Karachi Cotton Brokers Forum, international cotton prices exhibited a mixed trend during recent trading sessions. New York cotton futures were quoted between 66.50 to 70.00 American cents per pound.

The United States Department of Agriculture’s weekly export and sales report revealed significant trading activity for the 2025-26 season, with total sales reaching 86,100 bales. India emerged as the leading buyer, purchasing 27,300 bales, while Turkey secured the second position with acquisitions of 22,300 bales. Bangladesh rounded out the top three buyers with purchases of 15,400 bales.

Sajid Mahmood, Head of the Technology Transfer Department at the Central Cotton Research Institute Multan, in a telephonic conversation with renowned cotton analyst Naseem Usman, stated that across the world natural resources are considered a force capable of transforming the destiny of nations. But the question is: are the treasures buried beneath the earth the only true wealth? A closer look at Pakistan’s economy reveals a striking reality: our real gold is not hidden in the mountains but grows in our fields, takes shape in our factories and reaches international markets through human skill and ingenuity.

According to Sajid Mahmood, Pakistan may earn around two billion dollars annually from its gold reserves but when and with what consistency this income will materialize remains uncertain. In contrast, Pakistan’s IT sector is already generating over 2.5 billion dollars annually which proves that our true minerals are human resources and hard work. If Sialkot is earning six billion dollars through surgical and sports goods and Punjab’s rice along with Faisalabad’s textile exports together exceed ten billion dollars then the question arises: why are we neglecting our real wealth, agriculture and particularly cotton?

Sajid Mahmood added that cotton is the foundation of our textile industry and provides Pakistan with more than 16 billion dollars in annual exports. On the other hand, the combined value of Balochistan’s gas and gold hardly reaches one billion dollars. This clearly demonstrates that for Pakistan the true gold does not lie in buried minerals but in cotton, agriculture, industry and IT, sectors that consistently generate the foreign exchange the country relies upon.

The recent floods across Pakistan have caused severe damage to the country’s agriculture sector, destroying approximately 2.5 million acres of crops —equivalent to 7.7 percent of the total cropped area.

This was revealed in a report submitted by the Ministry of National Food Security and Research (MNFS&R) to the Senate Standing Committee on National Food Security and Research, which met here on Thursday under the chairmanship of Senator Masoor Ahsan.

According to the report, Punjab province has been the hardest hit, with around 90 percent of major crops—such as rice, sugarcane, maize, and fodder—affected by the flooding. The worst-affected districts in Punjab include Sialkot, Narowal, Gujrat, Jhang, Hafizabad, Chiniot, Multan, Muzaffargarh, Bahawalnagar, and Bahawalpur.