Weekly Cotton Review: Production rises 27pc to 1.7m bales YoY

KARACHI: Cotton production has reached 1. 7 million bales, marking a 27 percent increase over last year’s output. The sharp rise in production, combined with a significant drop in New York cotton prices, has pushed local cotton rates down by Rs. 500 to Rs. 700 per maund. However, trading volume remained comparatively subdued as the arrival of phutti, or seed cotton, continued to be limited. Meanwhile, the crisis surrounding the supply of imported cotton has worsened considerably, with hundreds of containers now stranded at the country’s ports. The situation has been compounded by the rising cost of energy and the illegal import of yarn and cloth, both of which have plunged Faisalabad’s loom industry into a severe crisis. In a separate development, the Evacuee Trust Property Board defied a clear directive from the Sindh High Court by refusing to allow affected residents to enter the KCE building. Cotton prices in the local market fell by 500 to 700 rupees per maund, settling between 18, 600 and 18, 800 rupees, as New York cotton prices dropped sharply and a positive cotton production report weighed on sentiment. However, the price of seed cotton (phutti) did not decline proportionately, so the panic expected among ginners failed to materialize. Ginners, having a large volume of pending deals to fulfill, also helped keep prices from coming under the pressure that had been anticipated. Overall trading volume in the market, meanwhile, remained comparatively subdued. Total cotton arrivals in Pakistan stood at 1, 696, 451 bales as of August 31, compared with 1, 335, 632 bales during the same period last year. This represents an increase of 360, 819 bales, or approximately 27 percent, over last year. At the provincial level, cotton arrivals in Punjab stood at 557, 097 bales, compared with 465, 570 bales last year, reflecting an increase of approximately 19. 7 percent. In Sindh, arrivals reached 1, 139, 374 bales against 870, 062 bales last year, showing an increase of approximately 31 percent. Textile mills are increasingly leaning toward imported cotton following a sharp decline in New York cotton futures prices. Meanwhile, the All Pakistan Textile Mills Association (APTMA) has raised concerns that hundreds of containers of imported cotton are stuck at the port, accumulating heavy demurrage charges, and has called for the situation to be resolved on an urgent basis. In a separate development, the Sindh High Court has directed the Evacuee Trust Property Board (ETPB) to deseal the Karachi Cotton Exchange building. However, representatives of those affected at the Karachi Cotton Exchange allege that the Federal Investigation Agency (FIA) has unlawfully taken possession of the Karachi Cotton Association (KCA) premises, and that despite the court’s order, the building has yet to be vacated. On the domestic market front, cotton prices in Sindh and Punjab ranged between Rs 18, 700 and Rs 19, 000 per maund, while phutti (seed cotton) traded between Rs 8, 500 and Rs 9, 200 per 40 kilograms. The Spot Rate Committee of the Karachi Cotton Association lowered the spot rate by Rs 500 per maund, closing it at Rs 18, 800. Naseem Usman, Chairman of the Karachi Cotton Brokers Forum, said international cotton prices had fallen, with New York cotton futures closing lower in the range of 82 to 88 US cents per pound. According to the US Department of Agriculture’s weekly export and sales report, 27, 500 bales were sold for the 2026-27 marketing year. India led the buyers with purchases of 10, 800 bales, followed by Vietnam, also at 10, 800 bales, while Bangladesh ranked third with 5, 200 bales. On the export side, total shipments stood at 189, 500 bales, with Vietnam the leading destination at 77, 300 bales, followed by India at 22, 200 bales and Pakistan at 17, 800 bales. According to the report issued by the Pakistan Cotton Ginners Association (PCGA) on September 3, 2026, total cotton arrivals in Pakistan stood at 1, 696, 451 bales as of August 31, compared with 1, 335, 632 bales during the same period last year. This represents an increase of 360, 819 bales, or approximately 27 percent, over last year. At the provincial level, cotton arrivals in Punjab stood at 557, 097 bales, compared with 465, 570 bales last year, reflecting an increase of approximately 19. 7 percent. In Sindh, arrivals reached 1, 139, 374 bales against 870, 062 bales last year, showing an increase of approximately 31 percent. According to the report, 332 ginning factories are currently operational across the country, while total stocks held by the factories stand at 158, 569 bales, comprising 45, 112 pressed bales and 113, 457 bales in the form of kapas (seed cotton). The textile sector has so far purchased 1, 464, 882 bales, while exporters and traders have purchased 73, 000 bales. During the latest fortnight, cotton arrivals amounted to 582, 938 bales, compared with 448, 231 bales during the corresponding period last year, representing an increase of approximately 30 percent in the fortnightly flow. At the provincial level, the performance of several districts has been particularly noteworthy. In Punjab, Dera Ghazi Khan recorded arrivals of 110, 102 bales, approximately 58. 65 percent higher than last year, while Bahawalnagar recorded 66, 331 bales, reflecting an increase of around 83 percent. Bahawalpur recorded arrivals of 66, 326 bales, while Vehari reported 85, 172 bales. In Sindh, Sanghar remained by far the leading district, with arrivals of 757, 845 bales. This is the highest district-level arrival recorded anywhere in the country and represents an increase of approximately 23 percent over last year. Other prominent districts in Sindh include Hyderabad with 75, 085 bales, Nawabshah with 47, 300 bales and Mirpurkhas with 39, 135 bales. Overall, Sanghar has emerged as the country’s most prominent cotton-producing area during the current season, while the performance of Dera Ghazi Khan, Bahawalnagar, Bahawalpur and Vehari in southern Punjab has also remained relatively encouraging. The overall situation of the current cotton crop appears better than last year; however, the volume of unregistered bales is also likely to be higher than last year. The initial slowdown in cotton arrivals in Sindh was primarily due to persistent rainfall, which delayed crop maturity and gave the crop additional time to reach the required stage for picking. Following the Hindu festival, if the weather remains hot and dry, cotton picking and arrivals in Sindh are expected to gain further momentum. Field observations indicate that the overall crop condition in both provinces is encouraging. However, observations of pink bollworm presence and infestation are also emerging from several areas of Punjab and Sindh. At this stage, therefore, continuous crop monitoring and timely protective measures are essential to minimise potential yield losses. The Advisory Committee of the Central Cotton Research Institute (CCRI), Multan, has also issued important recommendations for cotton growers for September. The advisory emphasises regular crop monitoring, timely management of pink bollworm and other insect pests, and the adoption of a proactive strategy to protect the crop from potential damage. Under the prevailing favourable weather conditions, average cotton yields of 1. 25 to 1. 5 bales per acre are expected in Punjab, while Sindh could achieve around 2. 5 bales per acre if favourable weather conditions persist. Following the strong arrivals recorded in August, the performance during September, prevailing weather conditions and the level of pest pressure in the crop will play a critical role in determining the overall production outlook for the season. While expressing serious resentment with officials of the Evacuee Trust Property Board (ETPB) for flouting its earlier order regarding the Karachi Cotton Exchange building, the Sindh High Court on Wednesday directed them to de-seal the historical building. The SHC also ordered the alleged contemnors to submit a compliance report at next hearing after de-sealing the subject building, which was sealed in a joint raid by the ETPB and Federal Investigation Agency in December after claiming it as a federal trust property. Citing chairman of ETPB Qamar-uz-Zaman, administrator/zonal head of ETPB Karachi Asif Khan and deputy administrator Shahid Ali as alleged contemnors, the Karachi Cotton Association (KCA) and other petitioners have filed applications seeking contempt proceedings against them for wilfully disregarding the SHC judgement, handed down on June 18, and refusing to hand over the building to the petitioners. They also submitted that the bench had referred the ownership dispute of the building to the chairman of the ETPB with direction to decide it within 90 days after providing a fair opportunity to all interested parties and also allowed the KCA to enjoy possession of the property till the determination of the property’s status. At the last hearing, the ETPB had informed the bench that its chairman had decided the ownership disputed about the building on July 30, declaring it as the federal evacuee trust property. When the matter came up for hearing before a two-judge constitutional bench of the SHC headed by Justice Mohammad Saleem Jessar on Wednesday, the administrator of ETPB Karachi along with his lawyer turned up and the bench came down hard on the alleged contemnor for disregarding its order. The counsel for the alleged contemnor submitted that since the chairman of ETPB had decided the matter in line with court order, therefore, these applications seeking contempt proceedings were not maintainable. The lawyer also argued that besides publication of a public notice in newspapers, notices were also issued to the parties concerned about the hearing before the ETPB chief while the appellants/petitioners have also obtained an interim restraining order from the SHC against the decision of the ETPB chairman. The lawyers for applicants contended that the documents related the subject property were in the building which has neither been de-sealed nor handed over to the applicants despite clear directives issued by the SHC. After hearing both sides, the bench in its order said: “By virtue of main order, specific directions were given to the parties that the petitioners shall enjoy possession. Instead the respondents/alleged contemnors have passed order and notified the property to be evacuee trust property without making compliance of the court’s order, which in our view is in clear defiance of court’s order and tantamount to an offence within the meaning of Article 204 of the Constitution of Islamic Republic of Pakistan, 1973. ” It also stated that when the bench confronted the alleged contemnor for not implementing its order, his counsel claimed that no case of contempt was made out as the authority has already decided the ownership dispute in terms of the SHC order. Adjourning the hearing till Sept 9, the bench stated: “We are not satisfied with the assertions made by the alleged contemnor. In view of this the alleged contemnors are directed to de-seal the property in question and submit compliance report before the next date of hearing. ” Copyright Business Recorder, 2026

Read full story on Business Recorder