Cotton prices in Pakistan’s local market climbed to Rs. 20,000 per maund last week, marking the highest level of the 2025–26 cotton year, amid fresh rainfall, damage to already sown crops, and the suspension of imports linked to the Gulf conflict.

Market participants say prices could continue to rise this week as supply constraints remain elevated. However, a potential reopening of imports from Afghanistan could help ease the pressure.

Ehsan ul Haq, chairman of the Cotton Ginners Forum, said prices had eased to around Rs. 16,500 per maund in mid-February, following warmer temperatures that accelerated cotton sowing in Sindh’s coastal belt and increased imports from the U.S. and Brazil.

“The trend reversed after rainfall affected sowing activity across major cotton zones, while the Gulf conflict disrupted overseas imports, leading to a sharp rise in local prices,” he said.

Haq added that the latest increase has pushed cotton prices to their highest level in nearly two years, with further gains possible if supply constraints persist. Ongoing Pakistan-Afghanistan trade talks in China are being closely monitored, as a successful reopening of the border could allow 250,000–300,000 bales of cotton to enter Pakistan, potentially easing the current price rally.