Key Takeaways
- Cotton production in Pakistan has surged by 77%, reaching 527,900 bales.
- Textile mills are facing rising input costs and closures due to seed cotton shortages.
- The Pakistan Textile Council urges the government for urgent steps to revive exports.
Pakistan’s cotton production has surged by 77%, reaching 527,900 bales as of July 18, 2026, according to a report from the Pakistan Cotton Ginners Association (PCGA). This significant increase in output comes despite challenges faced by the textile sector, including rising input costs and falling seed cotton supplies.
Market sources indicate that the decline in seed cotton supply has pushed cotton prices up by 500 to 800 rupees per maund. Similarly, spot rates have also risen by five hundred rupees per maund. The price surge is attributed to a sharp shortage of seed cotton, particularly in Sindh province.
Amir Naseem, a cotton broker who recently toured Shahdadpur, Sanghar, Tando Adam, and Mirpurkhas in Sindh, reported that the price of 40 kilograms of seed cotton had climbed to between 8,500 and 9,300 rupees. In Punjab, prices were even higher, reaching a range of 9,000 to 9,800 rupees per 40 kilograms.
The price rally has directly impacted the local market, with textile mills stepping up purchases against limited supply. This has led to sudden increases in cotton prices, further exacerbating the challenges faced by the sector.
Industry experts warn that a growing volume of imported cloth and yarn is undermining local manufacturers, forcing power looms and sizing units to shut down. Sajid Mahmood, an industry leader, stated that rising energy prices and heavy taxation are compounding the pressure, driving more textile mills toward closure and pushing unemployment steadily higher.
Amir Naseem also highlighted potential damage from erratic rainfall and water shortages in this year’s cotton crop in Sindh province. These factors raise fears of a production shortfall in the coming season, adding to existing concerns.
Against this backdrop, the Pakistan Textile Council has called on the government to take urgent and effective steps to revive stagnant exports and restore stability to the sector. The council emphasizes the need for immediate intervention to address the current challenges facing the industry.
Separately, a legal dispute involving the Karachi Cotton Association remains unresolved. Although the Sindh High Court granted temporary relief permitting the association to continue business operations within its building, officials report that they have yet to be allowed back into the premises despite the court’s ruling. This situation is described as deeply concerning by the association.
Cotton production in Pakistan has surged by 77%, reaching 527,900 bales.
The price of 40 kilograms of seed cotton had climbed to between 8,500 and 9,300 rupees in Sindh, while in Punjab it reached a range of 9,000 to 9,800 rupees per 40 kilograms.
Cotton broker Aamir Naseem
Rising energy prices and heavy taxation are compounding the pressure, driving more textile mills toward closure and pushing unemployment steadily higher.
Sajid Mahmood, Industry leader
