APTMA warns closure hurting cotton trade

December 29, 2025 (MLN): The All Pakistan Textile Mills Association (APTMA) has expressed serious concern over the continued closure and sealing of the Cotton Exchange building in Karachi, warning that the move is severely disrupting the country’s cotton and textile trade.

In a formal letter, APTMA stated that the prolonged shutdown has rendered the Karachi Cotton Association (KCA) ineffective, undermining a critical institution that plays a central role in the textile value chain.

The association emphasized that the KCA’s Daily Spot Rate of cotton serves as a key benchmark for indicative cotton pricing across the country.

According to APTMA, textile mills, banks, and insurance companies rely heavily on the Daily Spot Rate to determine daily cotton prices, assess borrowing limits, and insure cotton stocks.

The absence of this benchmark due to the closure has created uncertainty and operational challenges for stakeholders across the sector.

The letter further noted that the Cotton Exchange functions as a vital marketplace for cotton traders and brokers, and its sealing has badly affected trade activity and the livelihoods of hundreds of people.

APTMA highlighted that the Cotton Exchange is an iconic institution that has supported Pakistan’s cotton trade and economy since 1940.

APTMA warned that the continued closure is resulting in colossal losses to the cotton and textile sectors at a time when they are already facing multiple challenges.

The association has urged the relevant authorities to intervene urgently and facilitate the reopening of the Cotton Exchange building to prevent further disruption and financial damage.

The association also conveyed its willingness to provide any additional information required to help resolve the issue and restore normal functioning of the cotton market.

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