Naseem Usman
23 April 2025
KARACHI: Cotton prices show slow movement as trade volume remains limited.
The negotiations between All Pakistan Textile Mills Association (APTMA), Pakistan Cotton Ginners Association (PCGA) and the government regarding the Export Finance Scheme (EFS) have yet to yield any results.
Reports indicate that due to frustration with the government, PCGA Chairman Dr Jassu Mal Limani was compelled to send an SOS call to the Army Chief.
Meanwhile, a high-level cotton delegation from Tanzania visited the Karachi Cotton Association, marking a productive engagement.
The consistent decline in cotton production and quality is emerging as a complex industrial, agricultural, and economic challenge. Experts emphasize that a solution is only possible through scientifically backed, coordinated measures, urging immediate and effective action.
On a positive note, textile group exports recorded a 9.38% increase from July to March, signaling a favorable trend for the industry.
During the past week, the local cotton market remained generally stable in terms of cotton prices. Some transactions were settled at rates ranging from 15,500 to 17,500 rupees per maund, depending on quality and payment conditions. However, most of the cotton trade involves import agreements.
Additionally, yarn and fabric are also being imported, facilitated by the EFS (Export Finance Scheme), which is currently under negotiation between APTMA, PCGA, and the government, though no concrete outcome has been achieved so far.
Nevertheless, due to delays from the government, businesses are being severely affected. It appears that PCGA, disappointed with the government, has reportedly sent an SOS to the Army Chief. PCGA Chairman Dr. Jassu Mal Limani has sent a detailed letter outlining all the issues and requesting an immediate resolution to this serious matter.
According to received reports, early cotton sowing is underway in the provinces of Sindh and Punjab, but water scarcity remains an issue. In some areas of Sindh, water access is available, but the shortage has affected rice and sugarcane cultivation. The Sindh government has imposed certain restrictions on rice cultivation. In Punjab, reports indicate satisfactory sowing progress in several areas.
Recently, a textile machinery exhibition was held in Karachi where agreements and memoranda of understanding worth $550 million were signed. Over 500 international companies from more than 20 countries participated in the exhibition, showcasing advanced technologies. More than 67,000 trade representatives attended the event in one unit.
In the provinces of Sindh and Punjab, the price of cotton per maund is currently between 15,500 to 17,500 rupees, depending on quality and payment conditions. The Spot Rate Committee of the Karachi Cotton increased the spot rate by Rs 200 per maund and closed it at Rs 16,700 per maund.
Naseem Usman, Chairman of the Karachi Cotton Brokers Forum, told that international cotton prices remained stable. The price of Future Trading stayed between 67 to 68 American cents per pound.
According to the USDA’s weekly production and sales report, 202,000 bales were sold for the 2024-25 season. Vietnam remained at the top by purchasing 90,900 bales. India secured the second position by buying 35,300 bales. Turkey ranked third with the purchase of 32,000 bales. Pakistan came in fourth place by acquiring 19,300 bales.
For the 2025-26 season, 65,900 bales were sold. Pakistan led the purchases with 21,500 bales. Vietnam followed in second place with 11,700 bales, while Guatemala secured the third position by buying 11,100 bales.
https://www.brecorder.com/news/40358628/weekly-cotton-review-prices-show-slow-movement-as-trade-volume-remains-limited (Source: Business Recorder)