Weekly Cotton Review: Prices fall sharply as production rises

Local cotton prices fell sharply last week, dropping Rs1,000 to Rs1,200 per maund, according to Business Recorder, as ginners engaged in panic selling. A significant fall in New York cotton futures was one reason for the slide, drawing major textile groups toward imported cotton and prompting a considerable volume of import contracts over the past fortnight. With prices lower, ginners have started releasing stocks they had been holding back, so mill purchases have declined and earlier deals are being sold off in larger volumes.

The PCGA report, covering arrivals up to September 15, 2026, puts total cotton arrivals at 2,388,682 bales, 19.17 percent above last year. Sindh accounted for 1,527,740 bales and Punjab for 860,942 bales. Sajid Mahmood of the Central Cotton Research Institute in Multan said pink bollworm now poses the most serious threat as the crop enters a critical stage.

Separately, the All Pakistan Textile Mills Association met the EU ambassador to discuss securing a renewal of the GSP+ trade facility beyond its 2027 expiry. APTMA Chairman Kamran Arshad warned that losing the facility could cost Pakistan more than Rs1 trillion a year and lead to mill closures. He added that textile companies account for over 40 percent of outstanding bank loans, so banking, real estate and transport could also be affected.