Weekly Cotton Review: Prices remain stable amid low level of trading activity
KARACHI: Quality cotton prices remained stable although trading volume stayed limited. The spot rate recorded an increase of one hundred rupees per maund. Cotton production reached five million one hundred thirty-four thousand bales while total production is expected to reach approximately five million five hundred thousand bales.
The textile sector’s deteriorating condition continues to worsen with exports declining over the past several years.
All Pakistan Textile Mills Association (APTMA) has sounded the alarm warning that the textile sector is heading towards destruction. One hundred textile mills have closed down while several mills are operating partially.
Deputy Prime Minister Senator Ishaq Dar has presented a cotton revival plan however there appears to be a lack of clear strategy. The Federal Board of Revenue’s decision to monitor spinning and textile mills has been welcomed.
Head Transfer of Technology Central Cotton Research Institute Multan Sajid Mahmood stated that a decision has been made to install cameras for monitoring in textile mills but the textile mills are not willing to bear the burden of this additional expense over which APTMA has protested.
APTMA has challenged the minutes of the meeting held regarding cotton revival. They claim that the document does not reflect the true spirit, directives and consensus reached during the meeting
During the past week, cotton prices in the local cotton market remained generally stable. Demand for quality cotton has increased specifically, with several mills showing interest in quality cotton, which has resulted in relatively better prices for quality cotton. The business volume is being described as reasonable, and several ginners are stocking quality cotton in anticipation of improved prices.
The supply of Phutti is decreasing day by day, which has led to the belief that while there were hopes of a good cotton crop at the beginning of the season, it now appears that the crop may be somewhat lower than last year’s production of 55 lac bales.
According to data from the Pakistan Central Ginners Association dated November 30, cotton production in the country reached fifty one lac and thirty four thousand bales during this period.
Production in Sindh province stood at twenty seven lac and eighty four thousand bales, while Punjab province recorded production of twenty three lac and fourty nine thousand bales.
Over the past few years, the share of hosiery knitwear in Pakistan’s textile made-up exports has decreased from 37 percent to 14 percent, the share of ready-made garments has declined from 29 percent to 16 percent, and the share of bed wear has fallen from 24 percent to 11 percent. Therefore, if we do not promote the fashion industry in addition to conducting research and development to bring innovation to our designs and improvements in materials, our share of textile exports in the global market will continue to decline further.
The Karachi Cotton Association’s Spot Rate Committee increased the spot rate by 100 rupees per maund and closed the spot rate at 15,400 rupees per maund.
In Sindh and Punjab provinces, the price per maund of cotton is ranging from 13,800 to 16,000 rupees depending on quality and payment conditions, while the price of Phutti per 40 kilograms is ranging from 6,000 to 8,000 rupees according to quality. In Balochistan province, the cotton price is ranging from 15,400 to 16,200 rupees, while the Phutti price according to quality is ranging from 7,800 to 8,300 rupees per 40 kg.
Balochi cotton prices are ranging from 15,800 to 16,200 rupees, while Primark cotton prices are ranging from 16,800 to 17,000 rupees. The prices of cottonseed, cottonseed cake, and oil remain stable.
Chairman of the Karachi Cotton Brokers Forum, Naseem Usman, stated that international cotton prices showed a mixed trend, with New York cotton futures prices ranging between 62.13 and 66.00 American cents per pound.
The All Pakistan Textile Mills Association (Aptma) has challenged the official minutes issued on the revival of the cotton plan, stating that the document does not reflect the true spirit, directives and consensus reached in the meeting.
Instead, Aptma claims, the minutes appear to have been rephrased to serve the bureaucratic interests of the Ministry of National Food Security & Research (MNFSR), thereby misrepresenting the policy direction of the government and the decisions of the Deputy Prime Minister/Foreign Minister.
In a letter to Deputy Prime Minister Ishaq Dar, Aptma stated that the meeting marked a critical turning point for the revival of Pakistan’s cotton sector. However, the Association recorded its “strongest protest” over the minutes issued by MNFSR, alleging that they significantly deviate from actual proceedings and omit several key decisions explicitly directed by the Deputy Prime Minister during the session.
According to the letter, “the issued document fails to reflect the true spirit, directives, and consensus reached during the session, and instead appears to have been rephrased to serve the bureaucratic interests of MNFSR, thereby misrepresenting the government’s policy direction and the decisions of the Chair.”
APTMA claims that the Deputy Prime Minister’s directions regarding institutional reforms and representation in the Pakistan Central Cotton Committee (PCCC) were misstated or omitted in the minutes. The Deputy Prime Minister had reportedly instructed MNFSR to amend the rules of the Cotton Cess Act to ensure maximum representation of Aptma and other private-sector stakeholders, in line with the Aptma Cotton Revival Plan.
Copyright Business Recorder, 2025