Published July 13, 2026 Updated about 3 hours ago By Naseem Usman KARACHI: The domestic cotton market maintained overall price stability this week, with the spot rate holding firm at Rs 17,800 per maund and trading volume showing improvement, even as futures prices on the New York cotton exchange fluctuated and a deepening crisis among ginning factories cast a shadow over the sector. According to Musaib Adil, the persistent instability in cotton pricing has discouraged ginners from purchasing seed cotton (phutti), forcing several ginning factories to operate only partially while a considerable number have shut down entirely. Industry observers say the situation could worsen unless prices stabilize further and demand from ginners picks up. Compounding the challenge, cotton growers in Sindh are grappling with a severe shortage of water and rainfall, which has begun to affect both the quality and yield of the crop. The lint output extracted from seed cotton, known locally as “kan,” has also registered a decline, raising fresh concerns about the province’s overall cotton output for the season. Weighing in on broader agricultural policy, former Finance Minister Dr Qaiser Bengali criticized the practice of establishing sugar mills in cotton-growing regions, arguing that cotton carries far greater economic significance than sugar. He urged authorities to relocate sugar mill projects to areas situated closer to rivers, rather than encroaching on land historically reserved for cotton cultivation. Meanwhile, the long-running dispute over the Cotton Exchange Building in Karachi remains unresolved. Affected stakeholders say the Federal Investigation Agency (FIA) continues to occupy the building in defiance of a clear ruling issued by the Sindh High Court, prolonging uncertainty for those associated with the historic trading venue. Separately, the production estimates released by the Federal Committee on Agriculture (FCA) have come under sharp criticism from industry stakeholders. Ehsan-ul-Haq warned that unrealistic projections for the 2026-27 fiscal year risk undermining Pakistan’s credibility in international cotton markets, calling for more accurate and…