LAHORE: The Spot Rate Committee of the Karachi Cotton Association (KCA) on Saturday decreased the spot rate by Rs500 per maund, closing it at Rs21,000 per maund, as bearish market sentiment gripped the cotton sector amid growing frustration among ginners over the federal budget’s failure to address their longstanding tax concerns.
Cotton Analyst Naseem Usman told Business Recorder that the market remained bearish primarily because the ginning industry had been anticipating significant tax relief in the current budget, particularly regarding the heavy taxes imposed on ginning factories.
The Finance Minister and ministers of relevant departments had previously given assurances to delegations from the Pakistan Cotton Ginners Association (PCGA) that taxes on cottonseed, oilcake, and other animal feed by-products derived from the ginning process would be abolished.
However, the budget recommendations have completely overlooked these commitments, leaving ginners deeply disappointed and frustrated across the industry.
Usman further told Business Recorder that cotton prices in Sindh currently range between Rs21,000 and Rs21,300 per maund, while Phutti in the province is trading between Rs10,000 and Rs11,000 per 40 kilograms. In Punjab, cotton rates stand between Rs22,300 and Rs22,500 per maund, with Phutti fetching between Rs10,075 and Rs11,070 per 40 kilograms.
On the trading activity front, 200 bales from Nauabad were sold at Rs21,000 per maund, while 200 bales from Mir Pur Khas changed hands at Rs20,800 per maund. A total of 400 bales from Shahdad Pur were sold in the range of Rs20,800 to Rs21,000 per maund, and 600 bales from Tando Adam were traded between Rs21,000 and Rs21,200 per maund.
Copyright Business Recorder, 2026
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