Pakistan cotton prices hit Rs 20,000/maund amid shortfall, import delays

The cotton market in Pakistan has increased to a season-high price of Rs 20,000 per maund due to a 51 per cent shortfall in domestic production and delays in cotton imports. Deferred payment prices touched Rs 20,000 per maund, while routine payment prices ranged between Rs 19,000 and Rs 19,500.

Textile mills, struggling to meet increasing export orders, have turned to local cotton as imports, originally expected in March, are now delayed until May. Analysts predict further price hikes as demand remains strong. Ihsanul Haq, Chairman of the Cotton Ginners Forum, attributed the import delays to Brazil’s fumigation issues caused by a shortage of chemicals.

Meanwhile, the Federal Board of Revenue (FBR) is set to meet on January 13 in Islamabad to review the 18 per cent sales tax exemption on imported cotton and yarn. The meeting comes after Prime Minister Shehbaz Sharif directed the FBR to address protests from local cotton growers and ginners over price disparities with imported cotton.

This decision holds significant implications for Pakistan's textile sector and local cotton growers amid a volatile market scenario.