LAHORE: While Pakistan’s textile exports surged to a record $1.83 billion in July, industry stakeholders are warning that excessive contamination, moisture and quality deterioration in cotton caused by unprecedented rains and the continued expansion of sugarcane cultivation in cotton-growing regions can further increase the country’s dependence on cotton imports, undermining efforts to revive the sector.
Recent rains across major cotton-growing areas had generally benefited the crop and improved plant health, however, harvesting had been disrupted in many areas, leading to higher moisture content and contamination in seed cotton, creating difficulties for textile mills in procuring quality lint.
Pakistan’s total exports increased by 10 percent to $2.96bn in July 2026, while textile exports rose nine percent to $1.83bn, reflecting strong international demand.
Cotton Ginners Forum Chairman Ihsanul Haq said that if domestic production costs were brought closer to those of competing countries and a minimum 10pc regulatory duty was imposed on imports, the country’s overall exports could potentially double. He contrasted Pakistan’s cotton policy with neighbouring India, where government support for growers had intensified. He said that an Indian government agency purchased 5.22 billion kgs of cotton worth $4.35bn from more than 2.4 million farmers during crop year 2025-26, the largest quantity ever procured by a public institution in a single year. India also increased its support price for the 2026-27 crop by seven percent, setting prices equivalent to Rs10,330 per 40kg for long-staple cotton and Rs9,755 for short-staple varieties.
He criticised Pakistan’s longstanding neglect of the cotton sector, arguing that the absence of effective policy support had allowed many cotton-growing districts to shift towards sugarcane cultivation. As a result, he said, Pakistan was spending between $6bn and $7bn annually on cotton and edible oil imports.
Market data indicate that despite rising international cotton prices and limited availability of quality lint, domestic cotton prices remained largely stable last week. In Punjab, lint prices eased by Rs300 per maund to around Rs18,800, while Sindh prices held at Rs18,300 per maund. Market participants nevertheless expect prices to strengthen in the coming weeks.
According to Karachi Cotton Brokers Forum Chairman Naseem Usman, textile mills remained active buyers while ginners continued selling at prevailing rates. Trading volumes improved, although rains delayed arrivals of seed cotton and encouraged ginners to proceed cautiously with sales commitments.
Mr Usman said contamination and trash content in cotton had become a growing concern for the industry, warning that persistent contamination was eroding the competitiveness of Pakistani cotton.
The KCA increased its spot rate by Rs100 per maund to Rs18,300. Cotton prices ranged between Rs17,900 and Rs18,300 per maund in Sindh, Rs18,500 to Rs18,800 in Punjab, and Rs18,400 to Rs18,500 in Balochistan.
Internationally, New York cotton futures traded between 83 and 87 US cents per pound during the week. According to the US Department of Agriculture’s export sales report, Pakistan remained among the leading cotton importers, purchasing 35,500 bales during the reporting period.
Meanwhile, the Central Cotton Research Institute (CCRI) in Multan has advised growers to intensify pest monitoring following the recent rains and high humidity.
Sajid Mahmood, head of technology transfer at CCRI Multan, said the institute’s advisory committee warned that conditions had become favourable for jassid, whitefly and pink bollworm attacks, urging farmers to adopt timely crop management measures.
In a positive development, Pakistan has approved 14 new cotton varieties between 2021 and 2025 featuring improved fibre quality, higher ginning out-turn, heat tolerance, drought resistance and enhanced protection against bollworm infestation. Eleven of these varieties were developed by CCRI Multan and three by CCRI Sakrand.
Despite such advances, sector experts believe structural issues continue to hamper cotton revival. Pakistan’s textile industry requires approximately 15 million bales annually but domestic production remains far below demand. The country imported around seven million bales worth $2.5bn last year and may need a similar volume this season as production is expected to remain between 5.5m and 6m bales.
Latest figures from the Pakistan Cotton Ginners Association show that 785,926 bales had reached ginning factories nationwide by July 31. Pakistan has set a target of cultivating cotton on five million acres this year with a production goal of 9.6m bales, though industry observers consider that target difficult to achieve.
Experts have also expressed concern over the deteriorating condition of the Pakistan Central Cotton Committee (PCCC), the country’s principal cotton institution. The organisation is facing severe financial and administrative challenges, including hundreds of vacant positions, delayed salaries and pensions, and uncertainty over its proposed merger with the Pakistan Agricultural Research Council.
Published in Dawn, August 10th, 2026
