Cotton prices across Pakistan registered a sharp decline, with rates dropping by Rs500 per maund during the past week to Rs15,500 due to weak global demand and high domestic production, reported 24NewsHD TV on Monday.
According to the Cotton Ginners Forum, the ongoing slump in global and domestic cotton markets has hit the entire value chain, forcing several textile and ginning factories to halt operations.
Forum Chairman Ehsan-ul-Haq said that Pakistan’s high energy tariffs and interest rates have eroded the competitiveness of textile exports, pushing the cotton sector into crisis.
He urged the government to prioritise support for local industries and lower production costs instead of spending over Rs600 billion annually on the Benazir Income Support Programme (BISP).
Meanwhile, data from the Pakistan Cotton Ginners Association showed a 40% increase in cotton arrivals as of September 30 compared to last year, adding further downward pressure on prices. Cotton arrivals are expected to remain high over the next two weeks.
In Sindh, cotton prices ranged between Rs14,800 and Rs15,300 per maund, while in Punjab, prices were between Rs14,750 and Rs15,300. The Karachi Cotton Association reduced its official spot rate by Rs500 per maund to Rs15,100.
At the international level, cotton futures in New York traded between 63.84 and 68.10 cents per pound.
Reporter: Ashraf Khan