A serious disruption has emerged after the Evacuee Trust Property Board took possession of the Karachi Cotton Association (KCA) building on December 12, 2025, halting operations for nearly 320 cotton brokers and tenants.
👉 The sudden move has led to daily financial losses running into millions of rupees, with stakeholders demanding immediate reopening of the premises.
⚠️ Historic Disruption: No Cotton Spot Rate Issued
For the first time in its 52-year history, the Karachi Cotton Association failed to issue the daily cotton spot rate.
👉 This has created major market uncertainty because:
- Spot rate is the primary pricing benchmark
- Used by traders, spinners, and exporters
- Essential for price discovery and contracts
👉 Its absence has disrupted market transparency and trading decisions
🤝 Ongoing Negotiations to Resolve Dispute
Discussions are ongoing between:
- Evacuee Trust Property Board
- Karachi Cotton Association management
👉 Aim: Resolve the dispute and restore normal market functioning
📊 Cotton Market Performance Remains Subdued
Despite the disruption:
- Cotton prices remained largely stable
- Trading volumes stayed low
- Year-end bank holidays further reduced liquidity
👉 Market activity remained slow and cautious
📦 Cotton Arrivals & Consumption Data
According to Pakistan Cotton Ginners Association (as of Jan 3, 2026):
📥 Total Arrivals (by Dec 31, 2025)
- Current year: 5,434,044 bales
- Last year: 5,452,250 bales
👉 No significant YoY change
🏭 Consumption & Purchases
- Textile mills: 4,708,380 bales (↑ from 4,650,000)
- Exporters & others: 176,000 bales (↓ from 180,000)
👉 Domestic consumption remains slightly stronger
📦 Stock Position
- Current stocks: 549,664 bales
- Pressed: 481,966 bales
- Loose: 67,698 bales
- Last year: 588,531 bales
👉 Stocks are slightly lower YoY
🚚 Cotton Movement
- Current: 132,636 bales
- Last year: 84,916 bales
👉 Indicates improved logistics and movement
🏭 Ginning Activity
- Operational factories: 223
💰 Domestic Cotton Prices
📍 Sindh & Punjab
- Lint: PKR 14,000 – 16,200 per maund
- Phutti: PKR 6,000 – 8,000 per 40 kg
📍 Balochistan
- Lint: PKR 15,500 – 16,200 per maund
- Phutti: PKR 7,800 – 8,500 per 40 kg
👉 Limited phutti availability is supporting prices
🌍 International Cotton Market
- New York futures: 63–64 US cents per pound
👉 Global trend remains mixed with limited volatility
⚖️ Market Sentiment
Current cotton market reflects:
- Operational disruption due to KCA closure
- Stable prices but weak trading volumes
- Liquidity pressure due to holidays
- Uncertainty in price discovery mechanism
🔚 Conclusion
The takeover of the Karachi Cotton Association building by ETPB has triggered a significant disruption in Pakistan’s cotton market, halting the issuance of the spot rate for the first time in decades. While prices have remained stable, trading activity is subdued amid uncertainty and liquidity constraints. With negotiations ongoing, restoring KCA operations will be crucial for re-establishing market confidence and ensuring smooth price discovery in the cotton sector.
The Agri-Crop editorial team comprises commodity market analysts, rice trade specialists, and agriculture industry professionals based in Pakistan. We track daily price movements, export data, and policy developments across Pakistan’s key agricultural sectors.
