Pakistan’s cotton market has surged to unprecedented levels, with prices hitting a record Rs19,500 per maund, reflecting a sharp Rs1,500 jump in just one week and a total increase of Rs3,000 over the last fortnight, according to local traders.
The bullish trend is being fuelled by regional instability and international market volatility. The ongoing Gulf conflict has disrupted cotton imports, while international prices for May have climbed 3.20 percent to 69.46 cents per pound, putting additional pressure on the domestic supply chain.
Seed cotton, or Phutti, has also seen significant price gains, rising Rs1,000 to Rs9,300 per 40kg, with some one-month deferred transactions reportedly reaching Rs20,000 per maund. While such high prices could motivate a substantial increase in cotton cultivation for the 2025-26 and 2026-27 seasons, unusual weather patterns—including temperature drops and light rainfall across major cotton zones—have temporarily slowed sowing activities.
Experts note that if the momentum continues, Pakistan could reduce reliance on imported raw cotton and edible oil, supporting foreign exchange stability. However, concerns are mounting over a recent policy shift granting exclusive rights for certified seed varieties of major crops, including cotton, wheat, and rice, to selected companies or consortia.
Ihsanul Haq warned that this move could create monopolies, sidelining more than 500 existing seed companies and leaving farmers with limited access to high-quality certified seeds. He cautioned that restricted supply or poor distribution could force farmers to rely on low-yield, unverified seeds, undermining national crop output.
To address the issue, the Cotton Ginners Forum is urging the government to adopt a volume-based royalty model, allowing any approved seed company to produce and sell certified varieties while paying a fixed fee per tonne. The approach aims to maximize access to high-quality seeds, improve per-acre yields, and ensure that the current cotton market boom translates into sustainable economic benefits for Pakistan.
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