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 ninth 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 8.60 million bales in 2019-2020 as on 15.03.2020 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.


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