09-05-2025
- Business
- Business Recorder
National cotton policy: KCA hails APTMA-PCGA decision
LAHORE: The Karachi Cotton Association (KCA) has taken note of recent reports in the electronic media indicating that the All Pakistan Textile Mills Association (APTMA) and the Pakistan Cotton Ginners Association (PCGA) are collaborating to draft a National Cotton Policy, formulate a standardized sale/purchase contract for raw cotton, and work towards the revival of cotton production in the country.
The KCA has expressed its appreciation for these efforts and reaffirmed its commitment to supporting initiatives aimed at revitalizing Pakistan's cotton sector.
The KCA recalled that it has been consistently urging all stakeholders in the cotton economy to come together and develop a joint strategy for the government's consideration to boost cotton production. The objective is to meet the growing demands of the local textile industry, generate surplus for export to earn foreign exchange, and reduce reliance on cotton imports to conserve the country's valuable foreign reserves.
However, despite repeated invitations, the KCA has yet to receive a positive response from other key players in the cotton trade for reasons that remain unclear.
The association has repeatedly urged the government to take necessary steps to enhance cotton quality, improve bale packaging, and ensure a standardized weight of 170 kg per bale for the benefit of the entire cotton trade and industry.
The KCA emphasized that cotton exporters, as secondary buyers, play a crucial role in stabilizing the market and protecting the interests of cotton growers. It further stressed that any National Cotton Policy should only be finalized after thorough consultations with all stakeholders, including the KCA, which serves as the premier body of Pakistan's cotton trade.
The KCA highlighted that it had previously developed a draft for a local sale/purchase contract for raw cotton, incorporating provisions for arbitration under its bylaws in case of disputes between buyers and sellers.
This draft was shared with APTMA and PCGA for approval. While PCGA endorsed the proposal, APTMA's approval remains pending. The KCA believes that since the draft contract was the result of extensive deliberations and has already been approved by both KCA and PCGA, APTMA should also consider endorsing it to avoid unnecessary delays in finalizing a new draft.
The KCA has called upon the government to ensure that any National Cotton Policy is finalized and approved only after comprehensive consultations with all relevant stakeholders, including the KCA.
Additionally, the association has urged authorities to implement measures aimed at increasing cotton production, improving quality, standardizing bale weights, and enhancing packaging to support the broader cotton trade and industry.
Copyright Business Recorder, 2025
