KARACHI: Cotton prices in Pakistan have climbed to a two-year high, with rates rising by Rs4,000 per maund to reach Rs20,500, market sources said on Monday.
The surge comes amid a suspension in cotton import activity following inconclusive US–Iran talks related to Gulf tensions, which has disrupted supply chains and pushed local prices higher.
According to Chairman Cotton Ginners Forum Ehsan-ul-Haq, the market has been on an upward trend for the past six weeks due to limited availability of quality domestic cotton and a sharp rise in polyester fibre prices.
He said the price rally has also triggered increased forward trading in cotton and phutti across local markets, with traders actively securing deals for future deliveries at higher rates.
Reports suggest that traders in Sindh’s Tando Bago and Digri areas have agreed advance sales for delivery to mills in Khanewal at rates between Rs10,000 and Rs10,500 per 40kg. In Sanghar, a ginning factory reportedly sold 200 bales at Rs21,700 per maund for mid-May delivery.
Market observers expect further advance deals in the coming days, which may encourage increased cotton cultivation this season due to attractive pricing.
Industry estimates indicate Pakistan’s cotton output for 2025-26 stands at around 5.6 million bales, while a recent US agricultural report has revised the forecast upward to 7.22 million bales, citing updated production assessments.
Experts also suggest that discrepancies between official and independent figures may be linked to unrecorded (“off the record”) sales within the domestic market.
