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LAHORE: Pakistan emerged as the largest buyer of US cotton for the second consecutive week despite a sharp decline in domestic cotton and phutti prices during the Eidul Azha holidays, prompting industry bodies to urge the federal and provincial governments to reduce taxes, energy tariffs and interest rates in the upcoming budgets to support the struggling cotton and textile sectors.
Cotton prices recorded a significant fall during the holiday period. In Sindh, 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. 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.
