Weekly Cotton Review: Panic buying by textile mills leads to a sharp rise in prices

Business Recorder reported that domestic cotton rates surged over the previous seven days as mills stepped up panic purchases. Ginners, who had already committed more cotton than they held, parted with only small volumes. The Karachi Cotton Association lifted its spot rate by Rs300 per maund, closing at Rs19,300, while phutti, or seed cotton, also gained significantly. Deals for nearly 20,000 bales at lower rates are reportedly still awaiting settlement.

In Sindh, cotton traded between Rs19,000 and Rs19,400 per maund, while phutti sold for Rs8,500 to Rs9,200 per 40 kilograms. Balochistan recorded Rs19,300 to Rs19,500 per maund, and Punjab Rs19,200 to Rs19,300. Naseem Usman, chairman of the Karachi Cotton Brokers Forum, said New York cotton futures stayed in a range of 91 to 93 US cents a pound. He also cited USDA data showing 95,700 bales of sales for the 2026-27 season, led by Vietnam.

Complaints that some ginners are mixing waste into cotton have prompted APTMA, PCGA and PCBA to vow strict action against offenders. The bodies cautioned that, if left unchecked, the malpractice might erode trust in the sector. Mills say the poor quality weakens yarn and cloth, which may lead overseas buyers of garments to scale back orders. APTMA's Gohar Ejaz added that Pakistan needs 14 to 15 million bales yearly, against domestic output of about 5 million.