Pakistan industry sources suggest that domestic cotton prices may strengthen in the coming days, supported by stronger demand from textile mills, an improved market outlook, higher yarn and fabric prices in China, and a tighter local supply.
Cotton Ginners Forum Chairman Ihsanul Haq stated that market confidence has strengthened even though cotton output remains about 45% below the official target. He added that final production may surpass earlier projections by 100,000 to 150,000 bales, with strong buying from textile mills helping stabilize prices.
According to the latest data from the Pakistan Cotton Ginners Association (PCGA), cotton arrivals at ginning factories stood at 5.434 million bales as of December 31, 2025, nearly unchanged from 5.452 million bales during the same period last year.
Between December 16 and 31, textile mills purchased about 218,000 bales, surpassing market expectations.
By late December, textile mills had utilized around 4.708 million bales of cotton, up from 4.65 million bales last year, while exporters and other buyers acquired nearly 176,000 bales. Currently, cotton stocks are at 549,664 bales, slightly below last year’s level, indicating a tighter supply. At present, 223 textile units are functioning nationwide.
Provincial data indicate that Punjab’s ginning factories received 2.541 million bales, marking a 4.44% decline year-on-year.
Ihsanul Haq cautioned that permitting new sugar mills or expanding existing ones in cotton-growing regions could slash cotton output by up to 50%, compelling Pakistan to spend billions annually on cotton and edible oil imports. He called on the government to maintain restrictions on sugar mills in cotton-producing zones.
Industry stakeholders have also raised concerns over the ongoing suspension of official spot cotton rates, noting that it has disrupted bank financing and trade activities. Analysts emphasize that sustained investment in research, better ginning practices, and consistent policies will be crucial to stabilizing domestic cotton prices and strengthening Pakistan’s textile exports.
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