The Karachi Cotton Association is the premier body of the cotton trade in
the country and is officially recognized by the Government of Pakistan. It
was setup in 1933 to establish just and equitable principles for the
cotton trade, to set standards of cotton and provide all necessary
facilities for domestic and export trade in cotton. It has been made
obligatory for all members of the Association to deal with each other
through licensed cotton brokers.
The By-Laws of the Association cover comprehensively the entire field of
cotton marketing and have the approval of the Government under the Cotton
act of 1957. Among other things, the By-Laws provide for the maintenance,
discipline and fair trading practices, running of the future market,
establishment of clearing house, fixing of daily spot rates, arbitration
of disputes, making of ready and forward transactions, standards of
different varieties of cotton, issues of cotton brokers licenses and
dealing with cases of defaults. The representatives of various trade
interests suitably safeguard their interest through the provision that the
Board of Directors of the Association consists of specified number of the
Buyers/Exporters, Sellers and Others and also four official nominees of
the Government representing interests not directly represented through
membership of the Association.
For the last eighty two years of its existence, the Karachi Cotton Association
has dealt with day to day problems concerning the marketing of cotton
efficiently and effectively under the free economic system, where forces
of supply and demand pay their role to establish price levels equitable
to all sections of the cotton economy. The country's cotton crop has expanded
from 1.1 million bales in 1947-48 to 14.87 million bales in 2014-2015
and quality and grades have also improved considerably.
Recommendations of the Karachi Cotton Association at various stages have
also encouraged the research workers to evolve new varieties of cotton.
this has resulted in the production of longer staple cotton to cater to
the needs of foreign buyers and local mills.
Cotton is the most important produce of the country and its contribution
in the national economy is outstanding. It is also a major foreign
exchange earner for the country. Pakistan cottons are recognised the world
over as finest cottons for spinning of coarse and medium count yarns.
These have excellent strength, desirable micronaire, good uniformity ratio and compare favorably with cottons in the comparable staple range.
Despite the fact that private sector was earlier disallowed export of
cotton, it continued to take all possible steps in expanding the markets
for Pakistan cotton.
Beside advising authorities on various aspects of cotton policy, the
Karachi Cotton Association maintains liaison with ginners and textile
mills for orderly and smooth flow of cotton from farms and factories and
onwards to mills and for export.