Cotton prices in Pakistan have continued to decline, with a further drop of Rs. 1,000 in the spot market, closing at Rs. 17,000 per maund.
This downward trend has seen prices fall by nearly Rs. 4,000 per maund since early September when they peaked at Rs. 21,000 per maund. Punjab Phutti (seed cotton) prices have also followed a similar trend, dropping by more than Rs. 2,000 per maund in a month.\
Several factors contribute to this decline, including a fall in the value of the US dollar, which makes imported cotton more attractive, and a crackdown on commodities hoarding, which has discouraged traditional investors. Additionally, attacks by pests like whitefly and mealy bugs have impacted cotton yields and quality.
This decline in cotton prices could have significant financial implications for farmers and the government’s efforts to promote cotton as a cash crop.