Cotton prices dropped by Rs2,000 per maund to Rs21,000 per maund, while in Punjab they declined by Rs1,000 per maund to Rs22,000 per maund, it was reported on Monday.
Phutti prices also plunged by Rs1,500 per maund to Rs10,500 per 40 kilograms, with market experts fearing further declines in the coming days
Chairman of the Cotton Ginners Forum, Ihsanul Haq, said Punjab’s imposition of a new tax on the transportation of cotton and phutti from Sindh has widened the price gap between the two provinces, making cotton more expensive in Punjab than in Sindh.
The decline in local prices comes amid a sharp downturn in international cotton markets, where prices have reportedly fallen by as much as 10 cents per pound over the past few days, putting additional pressure on Pakistan’s cotton market.
Despite the slump in prices, Pakistan’s textile industry continues to rely heavily on imported cotton due to dwindling domestic stocks.
Pakistan remained the largest purchaser of US cotton during the latest reporting week, buying 68,030 bales out of the total 112,000 bales sold by the United States. Pakistani textile mills are also importing substantial quantities of cotton from Brazil.
Meanwhile, India has taken what industry observers describe as a strategic and business-friendly step by abolishing all taxes and duties on imported cotton from June 1 to October 31.
The decision includes the removal of the cumulative 11 per cent import duty as well as the Agriculture Infrastructure and Development Cess.
