KARACHI: A continuous decline in cotton prices, coupled with a sharp drop in New York cotton futures, has impacted the market.
Business activities have slowed significantly due to Eid-ul-Fitr holidays, while the notable reduction in electricity prices has been applauded by the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), All Pakistan Textile Mills Association (APTMA), and other trade and industrial bodies.
Meanwhile, cotton markets and stock exchanges have faced intense pressure following US President Trump’s decision to raise tariffs, leading to chaotic conditions. In light of these developments, a special committee has been formed to address the complex issue of EFS, with its first meeting scheduled for April, 7.
Analysts emphasise that coordinated government and industry-level measures are essential to restoring market stability.
After the Eid-ul-Fitr holidays, the local cotton market reopened, and brokers and ginners remained busy in exchanging Eid greetings. Only sporadic business took place, which was settled on a credit basis. Overall, the bearish trend in the market continued.
On Thursday, Prime Minister Shehbaz Sharif announced a significant reduction in electricity prices, which was appreciated by the textile sector, FPCCI and almost all industrial associations and organisations. According to them, the reduction of Rs. 7.69 per unit in electricity prices for industries is a positive step that will strengthen the economy.
On the other hand, American President Donald Trump announced a significant increase in tariffs on nearly 100 countries, which fell like a bomb on the global markets, causing a chaos. A massive wave of decline witnessed in almost all markets.
In the New York Cotton Market, the futures prices of cotton dropped sharply, reaching a record low of 62 to 63 American cents per pound, with negative effects seen in nearly all cotton markets worldwide.
The local cotton market also faced its negative repercussions. Business came to a complete halt, with no buyers in sight. Traders are in a state of extreme anxiety.
The price of cotton in Sindh and Punjab provinces remained in between Rs 16,000 to 17,000 per maund, depending on quality and payment conditions. The prices of cottonseed and oil also remained low. The Spot Rate Committee of the Karachi Cotton Association maintained the spot rate unchanged at Rs 16,800 per maund.
Naseem Usman, Chairman of the Karachi Cotton Brokers Forum, said that under the significant impact of President Trump’s increased tariffs, the price of New York cotton futures saw a notable decline of 5 to 6 US cents per pound. After nearly hitting a record low of 61 US cents, it closed at 63.36 US cents.
According to the USDA’s weekly production and sales report, sales for the 2024-25 season reached 129,100 bales. Vietnam remained at the top by purchasing 88,600 bales, followed by Turkey with 21,700 bales, and Pakistan secured the third position with 21,000 bales.
For the 2025-26 season, 40,000 bales were sold, with Mexico leading by purchasing 27,100 bales. Guatemala came in second with 5,300 bales, while Turkey ranked third with 3,300 bales, and India followed in fourth place with 2,600 bales.
However, a special committee has been formed to resolve the complex issue of EFS, and its meeting will be held on April 7, where a decision regarding EFS will be made.
Separately, Secretary Agriculture Punjab Iftikhar Ali Sahoo has stated that the first phase of cotton cultivation has been successfully completed. For the first time in the country’s history, a campaign for early cotton sowing was launched, yielding encouraging results.
He expressed these views while presiding over a high-level meeting regarding the ongoing cotton cultivation campaign at Muhammad Nawaz Sharif University of Agriculture Multan.
The meeting was attended by Special Secretary Agriculture South Punjab, Sarfraz Hussain Magasi, Additional Secretary Agriculture Task Force Punjab Shabbir Ahmad Khan, Chairman of the National Seed Authority Dr Asif Ali, Vice Chancellor of MNS University of Agriculture Professor Dr Ishtiaq Ahmad Rajwana, Directors General of Agriculture Punjab Chaudhry Abdul Hameed, Naveed Asmat Kahlon, Abdul Qayyum, Dr Amir Rasool, and Dr Sajid-ur-Rehman, Consultant to the Agriculture Department Punjab Dr Muhammad Anjum Ali, President of Kisan Ittehad Khalid Mahmood Khokhar, Cotton expert Dr Muhammad Iqbal Bandesha, along with officers from the Agriculture and Irrigation departments.
Secretary Agriculture Sahoo further emphasised that the special campaign for cotton revival is being appreciated at all levels. In the first phase, over 80% of the set target for cotton sowing has been achieved, and if the momentum continues, the target will be nearly met within the next two to three days.
He added that over 3.5 million acres of land in Punjab will be cultivated with cotton this season. To support cotton sowing and production targets, the Chief Minister, Punjab has announced a special incentive package.
He also mentioned that the second phase of cotton sowing will continue until April 30. Both the Agriculture Department and farmers are committed to achieving the cultivation targets. Monitoring is under way to ensure the availability of quality agricultural inputs in the markets.
Copyright Business Recorder, 2025
