Cotton prices drop sharply in Punjab, Sindh amid market volatility

KARACHI: Cotton prices have witnessed a notable decline in major markets across Punjab and Sindh amid ongoing fluctuations in domestic and international demand and supply trends, ARY News reported.

According to market data, cotton prices in Punjab fell by around Rs 1,000 per maund, bringing the rates down to approximately Rs 22,000 per maund. Similarly, cotton prices in Sindh dropped by about Rs 1,500 per maund, with rates settling near Rs 21,000 per maund.

Industry experts say the decline in cotton prices is linked to volatility in global cotton markets, which continues to directly impact local pricing trends in Pakistan.

Chairman Cotton Ginners Forum Ihsan-ul-Haq stated that several ginning factories have resumed operations, with eight units active in Punjab and five in Sindh. He also urged the government to abolish sales tax on the ginning sector in the upcoming federal budget to support the industry.

Market observers noted that cotton prices vary slightly between Punjab and Sindh due to differences in quality and demand conditions in regional markets.

Experts further highlighted that Pakistan, being the world’s sixth-largest cotton producer, has a significant textile processing capacity in Asia, with thousands of ginning and spinning units dependent on cotton supplies.

They added that climate change is increasingly affecting cotton crops in the country, with rising temperatures and unpredictable weather patterns shortening growing seasons and contributing to pest outbreaks such as whitefly and pink bollworm. This has forced farmers to rely more heavily on pesticides, increasing production costs.

Overall, the recent downturn in cotton rates reflects both global market pressures and domestic supply chain challenges facing the agriculture sector.