Pakistan Faces Cotton Shortage as Textile Mills Increase Imports from US and Brazil
Pakistan’s textile sector has started importing large volumes of cotton from the United States and Brazil ahead of the new ginning season as local cotton supplies continue to shrink and prices surge across the market.
According to industry estimates, Pakistani textile mills purchased nearly 206,100 bales from the latest US cotton crop, accounting for around 95 percent of total weekly US cotton sales. Importers are also increasing purchases from Brazil to secure raw material supplies before the arrival of the new domestic crop.
Experts say the situation reflects a serious cotton shortage in Pakistan, forcing the country to rely heavily on imports to keep the textile industry running. As a result, Pakistan could face a massive import bill for cotton and edible oil during the upcoming fiscal year.
Cotton Prices Reach Record Highs
The shortage has pushed cotton prices to historic levels across the supply chain.
- Cotton prices have climbed to around Rs. 23,000 per maund
- Phutti prices have reached Rs. 12,500 per 40 kilograms
- Cottonseed prices stand at Rs. 5,200 per maund
- Oil cake prices have increased to nearly Rs. 4,800 per maund
Industry stakeholders believe several policy issues have contributed to the decline in cotton production over recent years. Many experts point to the growing cultivation of sugarcane in traditional cotton-producing areas, especially in southern Punjab, which has reduced land available for cotton farming.
Industry Demands Relief Measures
The Pakistan Cotton Ginners Association has urged the government to remove sales tax on cotton and related products in the upcoming federal budget. Meanwhile, the All Pakistan Textile Mills Association has demanded lower electricity tariffs, reduced financing costs, and the elimination of the super tax to support exporters and manufacturers.
Despite current challenges, market experts expect some improvement after Eid ul Adha when new cotton arrivals from Punjab and Sindh begin reaching ginning factories. Traders also believe that reopening trade routes through Afghanistan could bring an additional 300,000 cotton bales into Pakistan, helping ease supply pressures in the coming months.
