Domestic cotton prices surge amid suspension of imports due to global conflict

LAHORE: Domestic cotton prices have experienced a significant increase over the past week, rising by Rs500 per maund to reach approximately Rs17,000. This spike is attributed to a limited supply of quality cotton in the local market and the suspension of cotton imports resulting from ongoing global war conditions.

Cotton Ginners Forum Chairman Ihsanul Haq stated that the upward trend in cotton prices is expected to persist in the coming week. He explained that the escalation in global oil prices has led to an unprecedented surge in polyester fiber prices, which climbed by a record Rs30 per kilogram in the local market during the same period. The increase in polyester prices has, in turn, driven up the rates of cotton yarn, thereby boosting demand for cotton.

Haq further noted that textile mills are purchasing larger quantities of quality cotton this year for the production of summer garments compared to previous years. Initially, this heightened demand was being met through imported cotton. However, due to the ongoing war conditions, shipments of imported cotton have been suspended, intensifying the pressure on local supplies.

The combination of restricted imports and rising synthetic fiber costs has created a tight supply situation, leading to the current bullish trend in the domestic cotton market. Industry stakeholders are closely monitoring the situation as the market adjusts to these supply chain disruptions.