LAHORE: In a highly unexpected development, advance deals for Pakistan’s new cottonseed (phutti) crop have commenced at record-high prices, with initial transactions reaching Rs10,000 per 40kg, signalling a strong upward trend in the market even before the crop arrives.

According to market sources, the first advance deal of four truckloads of phutti was struck on Monday between a trader from Tando Bago and a ginning factory in Khanewal at Rs10,000 per 40kg for mid-May delivery (May 15-25).

Meanwhile, a Sanghar-based ginning factory sold 200 bales of new crop lint in advance at Rs21,700 per maund for delivery on May 20.

A large trader has further intensified market momentum by announcing unlimited purchase offers for the new crop at Rs9,200 per 40kg in Sanghar and Rs10,000 per 40kg in Khanewal for the same delivery window, indicating strong bullish expectations.

Phutti sold at Rs10,000 per 40kg and lint at Rs21,700 for mid-May delivery

Cotton Ginners Forum Chairman Ihsanul Haq said that the sudden surge in advance trading follows a sharp rise of Rs3,500 per maund in lint prices over the past one to one-and-a-half months, pushing prices to a two-year high of Rs20,000 per maund. Expectations of further increases have triggered early and aggressive forward buying.

Market insiders expect more deals within the next few days, likely at even higher rates, as supply concerns persist.

One of the key drivers behind the price spike is ongoing rainfall across cotton-growing regions, which is expected to delay the arrival of the new crop. Additionally, cotton imports into Pakistan have remained largely suspended for nearly two months due to the Gulf conflict, further tightening supply.

However, prices could stabilise or decline if ongoing Pakistan-Afghanistan talks in China succeed, potentially reopening cotton imports from Afghanistan. Reports suggest Afghanistan currently holds 250,000 to 300,000 bales of cotton in stock, which could be directed entirely to Pakistan if trade resumes.

For now, the market remains firmly bullish, with traders anticipating further price escalation in both cotton and cotton lint advance deals in the coming days.

Published in Dawn, April 7th, 2026