Weekly Cotton Review: Market shows mixed trend amid steady trading activity
KARACHI: The domestic cotton market has witnessed a mixed trend in cotton prices while trading volume remains at a reasonable level. The market is facing a severe financial crisis situation due to declining demand and prices for cotton yarn.
According to government sources, there are concerns that cotton production may fall short of the government’s initial forecast by 34 percent, which is a cause for worry for the agricultural sector. Meanwhile, the international cotton market is also showing a mixed trend.
Head Transfer of Technology Central Cotton Research Institute Multan Sajid Mahmood emphasized the importance of government initiatives and public-private partnership regarding cotton revival, stating that the government’s announcement of concessional electricity rates for agriculture and industry is a positive step toward economic recovery.
Rear Admiral Atiq-ur-Rahman Abid (M) SI, Chairman of Karachi Port Trust, along with all his General Managers, visited the office of the Karachi Cotton Association and discussed matters of mutual interest with the Executive Committee and senior members of the cotton trade.
Agricultural scientists have expressed deep concern over the decline in cotton cultivation and emphasized the need for immediate measures to address the challenges facing this vital sector of the national economy.
The local cotton market displayed a mixed trend in prices during the past week. Although textile mills showed interest in purchasing cotton, ginners were also demanding higher prices due to a relative decrease in the supply of lint and an increase in rates, which resulted in moderate business activity. Business remained slow in Sindh province for two days due to the Hindu community’s Diwali festival.
The Pakistan Cotton Ginners Association’s production report dated October 15 showed an overall increase of 22 percent in cotton production compared to the same period last year, which has led textile mills to adopt cautious purchasing strategies. Experts believe that an accurate assessment of cotton production can only be made after the October 31 production figures, as arrivals of cotton are expected to be relatively lower in the coming 15 days. However, it remains premature to make any definitive statements about total cotton production at this stage.
The market is facing a severe financial crisis due to declining demand and prices for cotton yarn. Cotton production is likely to fall 34 percent short of the government’s initial estimates.
Rear Admiral Atiq-ur-Rehman Abid (M) SI, Chairman of Karachi Port Trust KPT, visited the office of the Karachi Cotton Association accompanied by all his General Managers and held discussions with the Executive Committee and senior members of the cotton trade on matters of mutual interest.
In Sindh province, cotton prices were in between Rs 14,800 to Rs 15,400 per maund according to quality, whilePhutti prices remained in between 6,800 to 7,600 rupees per 40 kilograms.
In Punjab province, cotton prices were in between 14,800 to 15,400 rupees per maund, with Phutti trading at 6,800 to 8,000 rupees per 40 kilograms.
The rate of cotton in Balochistan province was in between 15,300 to 15,900 rupees per maund, while the rate of Phutti was in between 7,000 to 8,500 rupees per 40 kilograms.
Balochi cotton specifically was priced between 15,900 to 16,000 rupees per maund, while the rate of prime quality cotton is in between 16,800 to 17,000 rupees per maund.
The Spot Rate Committee of the Karachi Cotton Association reduced the spot rate by 100 rupees per maund, closing the spot rate at 15,000 rupees per maund.
Karachi Cotton Brokers Forum Chairman Naseem Usman reported that international cotton prices showed mixed trends overall, with New York cotton futures trading between 64 to 69 US cents per pound.
Meanwhile, a significant meeting of the Cabinet Committee on Essential and Cash Crops was held under the chairmanship of Deputy Prime Minister and Foreign Minister Senator Ishaq Dar. The meeting emphasized comprehensive and immediate reforms to revive Pakistan’s crisis-hit cotton sector. Attendees included Federal Minister for National Food Security and Research Rana Tanveer Hussain, Special Assistant to the Prime Minister on Finance Tariq Bajwa, senior ministry officials, representatives of the All Pakistan Textile Mills Association (APTMA), cotton ginners, and farmers. The primary objective of the meeting was to address fundamental challenges such as the continuous decline in cotton production, weak supply chains, and a lack of research and development.
During the meeting, decisions were made to enhance private sector involvement in the development and promotion of cotton and to make the policymaking process more transparent and inclusive. This will enable research institutions, industry stakeholders, and farmers to collaborate effectively under a cohesive strategy. The Deputy Prime Minister stated that the cotton sector is the backbone of the national economy, and integrated, concrete, and sustainable measures are urgently needed for its revival.
Promoting public-private partnership is a positive and forward-thinking step by the government. This initiative will improve coordination between cotton research institutions and the industrial sector, creating new opportunities for research and development. This partnership is not a transfer of responsibility or authority but a collaborative engagement. Under government patronage, the inclusion of private institutions will promote research, innovation, and technology transfer. Globally, such models have played a significant role in agricultural development, particularly in cotton, and in Pakistan, this cooperation will help align policymaking with ground realities.
It is noteworthy that the All Pakistan Textile Mills Association (APTMA) has indicated its full cooperation in strengthening the cotton research and development system. APTMA’s agreement to increase the cotton cess from 50 rupees per bale to 142 rupees per bale is an extremely welcome and commendable development. This decision will provide financial stability to research institutions, which will not only ensure continuity in research activities but will also accelerate the preparation of new varieties, the promotion of modern technology, and the practical application of research to farmers. This initiative demonstrates the private sector’s role in alignment with national interests, which will prove helpful in strengthening the entire cotton value chain.
The government’s recent step toward revitalizing Pakistan’s cotton sector is commendable, emphasizing enhanced effective cooperation between the public and private sectors. Similar collaborative models are successfully implemented worldwide, such as in India, the United States, and Australia, where integrated partnerships among private industries, farmers, and research institutions have resulted in significant improvements in research, productive capacity, and market access. Following this pattern, the inclusion of APTMA and other private sector representatives in policy making and decision making processes for the promotion and development of cotton in Pakistan is a positive development that will foster investment, innovation, and transparency in the cotton sector.
Furthermore, other organizations associated with the cotton sector, such as the Pakistan Cotton Ginners Association, Pakistan Cotton Brokers Association, Pakistan Business Forum, Pakistan Textile Council, Hosiery, Bedwear and Exporters Associations are also important components of the cotton value chain. Consultation and mutual cooperation among all these stakeholders will make the decision making process more comprehensive and productive.
It is also important to note that recent policy initiatives are not directly related to the proposed merger of the Pakistan Central Cotton Committee (PCCC) and the Pakistan Agricultural Research Council (PARC). The federal cabinet has already approved this merger and legal processes are underway at the parliamentary level.
The potential merger of the Pakistan Central Cotton Committee and the Pakistan Agricultural Research Council is a significant and far-reaching decision of its kind. This will enable the integration of the research resources, human resources, and policy framework of both institutions under a unified system. It is expected that this merger will bring greater coherence and transparency in decision making for cotton development and promotion, while lending new energy to the alignment of research priorities, policy implementation, and national level efforts to revive the cotton sector.
Overall, the Deputy Prime Minister’s recent initiatives, the Ministry of Food Security’s proactive strategy, and APTMA’s positive involvement represent a ray of new hope for the cotton sector. If transparency, institutional cooperation, and effective participation of all stakeholders are maintained in this process, Pakistan’s cotton sector can not only be restored but can also regain its lost competitive advantage at the global level.
Additionally, Pakistan’s cotton production has sharply declined to 6.8 million bales in the 2025-26 season, which is 34 percent less than the target of 10.18 million bales.
According to an official document submitted to the Federal Committee on Agriculture (FCA), which was presided over by Malik Rasheed Ahmed Khan, the Minister of State for National Food Security and Research, cotton production estimates stand at 6.85 million bales from 2.0 million hectares for the Rabi season.
This significant decline is attributed to numerous challenges, including climate change, unpredictable rainfall and flooding, pest infestations such as whitefly and pink bollworm, Cotton Leaf Curl Virus Disease (CLCuD), limited seed technology, and competition from other crops.
Leading agricultural scientists have expressed serious concern over the dramatic decrease in cotton cultivation across Pakistan, particularly in Sindh province. They have warned that climate change, shrinking water resources, and unsustainable farming practices have resulted in an approximately 515 percent reduction in national cotton production over recent years.
Speaking at “Cotton Mela 2025” organized by the Center for Agriculture and Biosciences International (CABI) at the Business Incubation Center of Sindh Agriculture University (SAU), Tandojam, the experts emphasized the urgent need for coordinated research, innovation, and policy reforms to protect and restore Pakistan’s most important cash crop.
In a telephonic conversation with renowned cotton analyst Naseem Usman, Sajid Mahmood, Head of the Technology Transfer Department at the Central Cotton Research Institute, Multan, stated that the recent initiative of the Government of Pakistan—under which concessional electricity rates have been fixed for the agricultural and industrial sectors for three years—is a highly significant and commendable step toward economic recovery and increased productivity.
Copyright Business Recorder, 2025