Karachi Cotton prices have reached a new two-year high due to the failure of US-Iran talks on the Gulf War to resume import activities.
A record increase in cotton cultivation is also expected in Pakistan this year due to the high prices of new crop cotton and advance deals in Pakistani cotton markets.
Cotton Ginners Forum Chairman Ehsan-ul-Haq told Express that due to the suspension of cotton imports due to the Gulf War, extremely limited availability of quality cotton domestically and a record increase in polyester fiber prices, cotton prices in Pakistan have been on a steep rise for the past six weeks, which has led to a significant increase in the price of cotton per maund by Rs. 4,000 to Rs. 20,500.
He said that due to the rising trend in cotton and cotton prices, advance deals of cotton and cotton have also started in local markets at a rapid pace. A trader in Tando Bago area of Sindh has sold four trucks of cotton in advance to a cotton ginning factory in Khanewal for delivery from May 15 to 25 at Rs 10,000 per 40 kilograms, while a trader in Degri area has sold four trucks of cotton for delivery from May 20 to 30 at Rs 10,500 per 40 kilograms to a factory in Khanewal.
He said that a ginning factory in Sanghar has also sold 200 bales of cotton in advance at Rs 21,700 per maund for delivery on May 20. More advance deals of cotton and phuti are expected this week as well. It is expected that due to the excellent rates of phuti, cotton cultivation will also increase significantly across Pakistan this year.
He informed the PCGA that the total cotton production in the country during the cotton year 2025-26 has been 5.6 million bales, while one of the most reputable American agricultural organizations in the world has revealed in its recent April 2026 report that Pakistan’s total cotton production for the cotton year 2025-26, which was initially estimated at 6.813 million bales, has now been increased by 4.09 million bales to a new estimate of 7.221 million bales.
Chairman Cotton Ginners Forum Ehsan-ul-Haq said that due to heavy taxes, some ginning factories in Pakistan are also selling cotton “off-the-record” instead of “on-the-record”, so it is being assumed that this difference between the PCGA and the American report may be due to off-record sales.