KARACHI: The cotton market has witnessed a strong bearish trend, with prices declining substantially by 500 to 600 rupees per maund. The spot rate has also decreased by 500 rupees per maund, while cotton prices based on quality have ranged between 14,750 to 15,300 rupees per maund. A significant decline in cotton prices has also been recorded at the international level. According to ginners, lint prices have not experienced a proportional decrease.
World Cotton Day was observed on October 7 in cotton-producing countries around the globe, with the Karachi Cotton Association (KCA) also participating in the commemoration. The International Cotton Association (ICA) has emphasized global cooperation and sustainability regarding the future of cotton. Sajid Mahmood has declared that modern genetics, quality varieties, and enforcement of regulations are essential for improving cotton quality in Pakistan. Meanwhile, the All Pakistan Textile Mills Association (APTMA) has criticized the high energy rates affecting the industry.
The local cotton market witnessed a predominantly bearish trend in cotton prices throughout the past week. Textile mills exercised cautious purchasing while ginners began selling cotton at lower prices, although ginners are also reporting that the price of kapok has increased. However, due to reduced cotton purchasing activity in the market, they have started selling cotton at lower rates.
One major reason cited for the decline in cotton prices is the Pakistan Cotton Ginners Association production report dated September 30th, which shows a 40 percent increase in production compared to the same period last year. Sources indicate that cotton arrivals are expected to remain relatively higher over the next 15 days as well. On the other hand, the financial crisis in the market is intensifying due to declining prices and demand for cotton yarn.
World Cotton Day was celebrated on October 7th across cotton-producing countries worldwide. The Karachi Cotton Association also commemorated World Cotton Day.
The Karachi Cotton Association’s Spot Rate Committee has reduced the cotton spot rate by 500 rupees per maund, bringing it down to 15,100 rupees per maund.
In Sindh province, cotton prices ranged from 14,800 to 15,300 rupees per maund depending on quality, while Phutti prices were in between 7,000 to 7,600 rupees per 40 kilograms.
In Punjab province, cotton prices were in between 14,750 to 15,300 rupees per maund, with Phutti prices were in between 7,000 to 8,200 rupees.
In Balochistan province, cotton prices stood at 15,100 to 15,300 rupees per maund, and seed Phutti prices were in between 7,200 to 8,200 rupees. Balochi Phutti prices were in between 8,000 to 8,200 rupees, while Balochi cotton prices were in between 15,700 to 16,800 rupees per maund.
Naseem Usman, Chairman of the Karachi Cotton Brokers Forum, reported that international cotton prices remained bearish. New York Cotton futures prices were in between 63.84 to 68.10 American cents per pound.
Meanwhile, the Karachi Cotton Association celebrated World Cotton Day on October 7, 2025, at the association’s office to highlight the global importance of cotton and the challenges facing the world’s cotton economies, particularly Pakistan.
Addressing the occasion, Vice Chairman of the Karachi Cotton Association, Jahangir Mughal, emphasised the significance of World Cotton Day and expressed his desire for maximum efforts from all segments of the cotton trade to improve cotton trading in Pakistan.
Distinguished speakers from various sectors of the cotton trade included Khawaja Muhammad Noman, Chief Operating Officer of Messrs Control Union Pakistan (Private) Limited, Waheed Khalid, Chief Executive of Messrs AF Cotton Marketing and Senior Vice Chairman of the Pakistan Cotton Brokers Association, Rahat Aziz, Cotton Consultant and Expert, Cotton Arbitrator and former official of the Pakistan Cotton Standards Institute, Muhammad Naseem Usman, Member of the KCA Brokers Advisory Committee, Chander Lal, Member of the KCA Brokers Advisory Committee, Usman Kausar Lutfi, Head of Department at Messrs Sapphire Textile Mills Limited, and Shahbaz Ahmad, Lead Auditor and Certifier at Messrs Control Union Pakistan (Private) Limited.
They expressed their views regarding the challenges facing the cotton trade in Pakistan and urged the government to immediately take all possible measures to ensure the supply of certified cotton seeds to farmers to increase cotton production and to improve cotton quality in the country.
The need to modernize ginning factories was also emphasized to produce quality cotton. Furthermore, it was desired that payment of premiums for better quality cotton should also be ensured.
A large number of representatives from the cotton trade participated in the occasion.
Bill Kingdon, Managing Director of the International Cotton Association (ICA), has emphasized that the future of the cotton industry depends on global cooperation, as the sector faces increasing sustainability regulations, trade challenges, and growing competition from synthetic fibers.
The ICA and ICA Bremen have joined the “Make The Label Count (MTLC)” campaign to ensure that the European Union’s Green Claims Directive treats natural fibers fairly. The campaign focuses on preventing unfair sustainability classifications that could pose a threat to cotton and other natural fibers.
In a telephonic conversation with renowned cotton analyst Naseem Usman, Sajid Mahmood, Head of the Transfer of Technology Central Cotton Research Institute (CCRI) Multan, said that the continuous decline in the quality of Pakistani cotton has become a serious concern, adversely affecting both the national economy and exports. He stated that the major causes behind this deterioration include outdated ginning technology, the cultivation of substandard seed varieties, and the lack of effective implementation of the Cotton Control Act 1966.
Sajid Mahmood explained that the old double-roller and saw ginning machines used in the country exert excessive pressure on the fiber, which negatively impacts its length, strength, and cleanliness. In contrast, modern high-speed roller and rotary ginning technologies help preserve fiber quality while also improving productivity.
He noted that upgrading ginning factories, ensuring the supply of quality seed varieties, and linking the price determination system with quality standards are essential steps toward improving cotton quality. According to him, when cotton prices are determined based on quality, farmers will focus more on producing higher-grade cotton, thereby enhancing Pakistan’s overall reputation in the global cotton market.
Sajid Mahmood emphasized that effective implementation of the Cotton Control Act, the training of cotton pickers, and the promotion of modern agricultural practices can significantly improve the quality of cotton and help Pakistan regain its lost position in the international cotton trade.
All Pakistan Textile Mills Association (APTMA) has expressed deep concerns over excessively high energy tariffs that are undermining Pakistan’s industrial viability and export competitiveness. The failure to ensure regionally competitive energy pricing is stalling economic recovery, deterring investment, and accelerating de-industrialization.
Addressing a press conference at APTMA House Lahore, Kamran Arshad Chairman APTMA flanked by Asad Shafi Chairman North, leading Textile exporters including Anjum Zafar, Faisal Jawed, S.M. Nabeel, Mohammad Ali, Sufyan Akhtar and Raza Baqir Secretary General said that despite categorical assurances at the highest levels that industrial electricity tariffs would be rationalized to less than 9 cents/kWh by April 2025, the tariff has moved in the opposite direction.
Industrial electricity costs have increased from 10.4 cents/kWh in May 2025 to 11.7 cents/kWh in September, with further increases expected shortly.
Copyright Business Recorder, 2025
