Karachi: Despite cotton prices remaining much lower than expected during the cotton year 2024-25 and the availability of about 400,000 bales of cotton with ginning factories and stockists, advance deals for the new cotton crop have begun at a fast pace in Pakistan.
Advance deals for 27 cotton trucks have been finalized in various cities of Sindh on the basis of delivery in May. Along with more advance deals for cotton, advance deals for cotton are also to be finalized during the current week, due to which the new ginning season is also likely to start in May.
Chairman Cotton Ginners Forum Ehsan-ul-Haq said that due to the lack of domestic cotton sales due to record imports of cotton and cotton yarn due to government policies during the cotton year 2024-25, it was expected that cotton ginners would start the new cotton ginning season slightly late.
But unexpectedly, cotton advance deals have started very quickly in Pakistan and during this time, two vehicles in Pingrew Sindh were sold for Rs 8,300 based on delivery in the first week of May, 15 vehicles in Umerkot were sold for Rs 8,200 based on delivery from May 10 to 25, while 10 vehicles in Degri were sold for Rs 8,400 per 40 kg based on delivery from May 15 to 30.
However, some “smart” cotton ginners believe that the rapid start of deals for the new cotton crop could be a ploy by some textile mills, so that after the new ginning season in Pakistan starts soon, they will buy a few hundred bales of cotton at good prices and later use laziness to purchase cotton so that the prices of cotton can be brought down as much as possible.
He said that during the last week, the purchase of cotton by textile mills in Pakistan continued to be suspended, however, there are reports of some deals in some cities of Punjab and Sindh at Rs 17,000 to Rs 17,500 per maund.
