Cotton prices jump PKR 500 per maund as heatwave, import disruptions tighten supplies

Cotton prices in Pakistan have surged over the past two days, rising by PKR 500 per maund as extreme weather conditions and import disruptions linked to the Gulf conflict tightened domestic supplies, according to the Cotton Ginners Forum.

Cotton prices have climbed to PKR 19,000 per maund in Punjab and PKR 18,800 per maund in Sindh after gaining PKR 500 over the past two days and PKR 1,000 during the past week, the forum said.

Cotton Ginners Forum Chairman Ehsan ul Haq said the ongoing Gulf conflict has disrupted cotton imports, while prolonged heatwaves, below-normal rainfall and water shortages, particularly in Sindh, have sharply reduced seed cotton arrivals at ginning factories, pushing prices higher.

He warned that Pakistan's cotton crop is under severe stress because of record-high temperatures across major cotton-growing regions. The combination of extreme heat, limited irrigation water and dry weather could reduce both cotton production and crop quality, increasing the country's dependence on imported cotton.

Ehsan said much of the standing cotton crop has suffered from wilting and pest attacks caused by intense heat, adversely affecting plant growth and likely reducing per-acre yields.

He said the Punjab Agriculture Department has advised farmers to shorten irrigation intervals while reducing the amount of water applied, spray micronutrients such as boron, and apply potassium nitrate to early-sown cotton to minimize the impact of the heatwave.

The forum said lower seed cotton arrivals at ginning factories have also driven up seed cotton prices. It added that prices had already increased last week, with further gains expected if supply conditions remain tight.

Ehsan also criticized the federal budget for failing to provide relief to the cotton sector, particularly the ginning industry, which he said continues to face a heavy sales tax burden. He said several ginning factories in Sindh, especially in Tando Adam, suspended operations only a month after reopening, while no ginning factory had become operational in Rahim Yar Khan by the second week of July for the first time in at least 15 years.

He added that reports of additional textile mills shutting down have raised concerns about rising unemployment. He urged the federal and provincial governments to prioritize policies that support industry and business growth rather than expanding welfare spending, arguing that stronger industrial activity would strengthen Pakistan's economy and reduce its reliance on external financial assistance.