Pakistan remained the largest buyer of US cotton for the second consecutive week, even as domestic cotton and phutti prices fell sharply during the Eid ul-Adha holidays, highlighting the textile industry’s growing dependence on imported raw materials.
According to industry data, Pakistani textile mills purchased 68,030 bales out of the 112,000 bales of cotton sold by the United States during the latest reporting week. Mills are also continuing to import significant quantities of cotton from Brazil amid dwindling local stocks.
The imports come despite a steep decline in domestic cotton prices. In Sindh, cotton prices fell by Rs. 2,000 per maund to Rs. 21,000 per maund, while prices in Punjab dropped by Rs. 1,000 per maund to Rs. 22,000 per maund. Phutti prices also declined by Rs. 1,500 per maund to Rs. 10,500 per 40 kilograms.
Industry officials attributed the weakness partly to falling international cotton prices, which have reportedly dropped by as much as 10 cents per pound in recent days, putting additional pressure on local markets.
Chairman of the Cotton Ginners Forum, Ihsanul Haq, said a recently imposed tax on the movement of cotton and phutti from Sindh to Punjab has widened the price gap between the two provinces, making cotton more expensive in Punjab than in Sindh. The latest developments come as Pakistan’s cotton sector faces a long-term decline. The country, once among the world’s major cotton producers, has increasingly relied on imports to meet the requirements of its export-oriented textile industry due to falling domestic production and shrinking inventories.
Meanwhile, India has moved in the opposite direction by temporarily abolishing all duties and taxes on imported cotton from June 1 through October 31. The measure includes the removal of the cumulative 11 percent import duty and the Agriculture Infrastructure and Development Cess, allowing Indian mills to access cheaper raw materials.
The decision is expected to support India’s rapidly growing textile exports to China. Industry estimates show India has been exporting around 30,000 tonnes of cotton yarn to China every month since late 2025, compared to just 600 tonnes per month a year earlier.
Cotton analyst Sajid Mahmood said India’s move demonstrates how policy support can strengthen textile exports by ensuring uninterrupted access to competitively priced raw materials. He added that Pakistan should adopt more responsive policies to improve the competitiveness of its textile value chain.
Industry bodies, including the All Pakistan Textile Mills Association (APTMA) and the Pakistan Cotton Ginners Association (PCGA), have urged federal and provincial governments to provide relief in the upcoming budgets through lower taxes, reduced energy tariffs, and cheaper financing costs.
The sector continues to struggle with high electricity and gas prices, elevated borrowing costs, and the super tax on large industries. According to industry estimates, around 500 cotton ginning factories and more than 150 textile mills across Pakistan have either shut down or are operating below capacity.
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to facilitate sugar mafia, govt using cotton land to grow sugarcane, more than 65% land of cotting using to grow sugarcane for sugar mafias profit increase, and we knew who are the owners of sugar industries in Pakistan.