Cotton Crisis Deepens as Pakistan Turns to US and Brazil for Imports

Pakistan’s textile industry has begun importing large quantities of cotton from the United States and Brazil even before the start of the new ginning season, as local cotton stocks have nearly run out and prices across the cotton value chain climb to record levels.

According to industry reports, Pakistani textile mills purchased around 206,100 bales, or approximately 95 percent, of the 216,000 bales of US cotton sold during the past week from the 2026-27 crop. Mills are also increasing imports from Brazil to secure supplies ahead of the next domestic harvest.

The development is being described by industry observers as unprecedented, highlighting the severity of Pakistan’s cotton shortage. The country is now expected to spend billions of dollars on cotton and edible oil imports during FY27, potentially resulting in one of the largest import bills on record for these commodities.

The shortage has pushed domestic cotton prices to historic highs. Cotton is currently trading at around Rs. 23,000 per maund, while phutti prices have reached Rs. 12,500 per 40 kilograms. Cottonseed prices have climbed to Rs. 5,200 per maund and oil cake to Rs. 4,800 per maund, reflecting tight supply conditions across the sector.

Industry stakeholders argue that repeated policy failures have contributed to the decline in cotton production. They point to the continued expansion of sugarcane cultivation in major cotton growing regions, including the approval of new sugar mills in southern Punjab, as one of the factors reducing acreage available for cotton.

The Pakistan Cotton Ginners Association has proposed the abolition of sales tax on cotton and related products in the upcoming budget, while the All Pakistan Textile Mills Association has called for lower energy tariffs, reduced financing costs and the withdrawal of the super tax to support the sector.

Despite the current shortage, market participants expect some relief after Eidul Azha as ginning factories in Punjab and Sindh begin processing the new crop. The reopening of trade routes through Afghanistan could also bring an additional 300,000 cotton bales into Pakistan, helping ease supply pressures.