Pakistan textile mills sign deals for import of 1 million cotton bales

Textile mills in Pakistan have reportedly signed contracts for the import of one million cotton bales as the country's weather impacts domestic production amid rising demand.

Moreover, cotton prices have surged in August due to continuous rainfall impacting the quality of cotton in key growing regions.

Cotton Ginners Forum Chairman Ahsan-ul-Haq told Nukta that cotton prices have soared to PKR 18,500 ($66.4) per maund in Punjab and PKR 17,800 per maund in Sindh. They had averaged PKR 17,000 last month.

“Adverse weather conditions have not only affected the quality but also reduced cotton cultivation targets, leading to increased cotton imports. Textile mills have reportedly entered contracts to import one million bales to meet the shortfall,” he added.

• Former chairman All Pakistan Textile Mills Association Yasin Siddik
• also confirmed that textile mills were importing cotton bales.
• However, he couldn’t provide details of the quantity.

“Certain quarters are forecasting that cotton production will around eight million bales, but it would still be less than the demand. So, textile mills will import. Since the season is just starting, it will be premature to say how much,” he added.

A recent report by the United States Department of Agriculture forecasts export demand for Pakistan's textile products will increase modestly in fiscal year 2024-25.

Pakistan's cotton use

Despite the challenges faced by the textile sector, cotton use during FY25 is expected to rise marginally to 12.5 million bales, though still below the previous 10-year average and the peak of 14 million bales in FY21.

With the expected decrease in domestic production and a slight increase in usage, imports in FY25 are forecasted to be 4.1 million bales, slightly higher than in the previous fiscal year.

According to Pakistan Bureau of Statistics data, the country's textile exports stood at $1.27 billion in July, down 110.15% from $1.4 billion in June and 3.09% compared to $1.31 billion in the same month last year.

Meanwhile, Pakistan imported raw cotton worth $37.3 million in July, down 9.1% compared to $47.08 million in July 2023.