KARACHI: The cotton market is experiencing mixed price trends, with low business volume reported. Meanwhile, the bearish trend in New York cotton prices persists, raising concerns among stakeholders.
In a significant move to address these challenges, the sustainable recovery of cotton has been identified as a cornerstone for Pakistan’s economic stability.
Better Cotton (BC) and Pakistan Central Cotton Committee (PCCC) recently organized a high-profile conference focused on the revival of the cotton sector. The event saw participation from key stakeholders, including government officials, Special Investment Facilitation Council (SIFC) agricultural experts, industry leaders, research institutions, and farmer organizations.
On the ground, partial early cultivation of cotton has commenced in various regions of Sindh and Punjab, signalling the start of the new season. However, industry experts are calling for policy reforms to support the sector. Among the key recommendations is the elimination of the disparity in tax rates between imported and local cotton, a measure deemed crucial for fostering growth and competitiveness in the domestic market.
The conference highlighted the need for collaborative efforts to ensure the sustainable recovery of cotton, which remains vital to Pakistan’s agricultural economy and overall economic stability.
In the local cotton market last week, the trend in cotton prices was mixed. Textile spinners are showing more interest in imported cotton due to its relatively lower price and better quality. The most significant factor is the availability of EFS (Export Finance Scheme) facilities. On the other hand, local cotton is subject to an 18% sales tax, and its quality is also not as good.
In addition, cotton yarn is also being imported in large quantities, and fabric is being imported as well. According to yarn brokers, such a large amount of yarn is being imported that there is a shortage of warehouses to store it. The industry is already severely affected due to high energy costs and the lack of a level playing field compared to regional countries.
APTMA (All Pakistan Textile Mills Association) states that currently, about 40% of the industry has already shutdown, and more units are closing. Energy was already very expensive, and now the price of gas has been increased by 500 rupees, which will further burden the industry. Ginners have stocks of cotton lying idle.
Several traders were hopeful for an increase in prices, but due to extremely low purchases by textile spinners, they have also started to feel concerned. Most of the business is being conducted on credit.
The production of cotton in the country is decreasing every year. Efforts are being made by both government and private sources to revive the cotton crop. A campaign is being launched to promote the cultivation of cotton.
Farmers are being encouraged to start sowing cotton in February and March. On Tuesday, a high-level National Conference on Cotton Revival: The White Gold of Pakistan – Challenges and Opportunities was held at a local hotel in Karachi, organized in collaboration with PCCC and Better Cotton. Officials from organizations associated with the cotton business participated and shared valuable advice and suggestions. Major General Shahid Nazir (R), HI (M), Director General of SIFC, and other stakeholders attended the conference. They emphasized that cotton is the lifeline of the country’s economy and stressed the need to significantly increase cotton cultivation and production. They urged for immediate and war-footing implementation of measures to boost cotton production. The conference particularly encouraged increasing cotton cultivation in Sindh and Balochistan, with a special focus on promoting the cultivation of organic cotton. A similar conference is scheduled to be held in Multan, Punjab, on February 4 as part of this initiative.
In the province of Sindh, the price of cotton, based on quality and payment, ranges from 17,500 to 18,500 rupees per maund. In Punjab, the price of cotton ranges from 17,800 to 18,700 rupees per maund. In Balochistan, the price of cotton has remained between 17,800 and 18,800 rupees per maund. The supply of Phutti has nearly ended. Prices for cottonseed, cottonseed oil, and other by-products remain relatively stable.
The Spot Rate Committee of the Karachi Cotton Association reduced the spot rate by Rs. 200 per maund, closing the spot rate at Rs. 18,000 per maund.
Naseem Usman, Chairman of the Karachi Cotton Brokers, stated that the downward trend in international cotton prices continued, with New York cotton futures trading between 66.50 to 67.50 cents per pound. According to the USDA’s weekly export and sales report, 280,000 bales were sold for the 2024-25 season.
Vietnam remained at the top by purchasing 86,000 bales.
Turkey secured the second position by buying 76,300 bales.
Pakistan ranked third with the purchase of 49,800 bales.
For the 2025-26 season, 38,600 bales were sold.
Malaysia led by purchasing 26,400 bales.
Costa Rica came in second with the purchase of 11,000 bales.
Japan ranked third by buying 1,200 bales.
Copyright Business Recorder, 2025