Home / Knowledge / News / Textiles / Spinners turning defaulters - PCGA
Spinners turning defaulters - PCGA
Jul '11
A majority of the textile spinning and weaving mill owners are dithering in making payments as cotton prices have slashed to Rs. 6,800 to Rs. 7,000 per maund, Pakistan Cotton Ginners Association's Executive Committee member Ehsan-ul-Haq has said.

He added that these mill owners bought cotton on credit basis when prices were touching Rs. 14,000 per maund.

Mr. Ehsan said that cotton ginners are experiencing severe financial crunch as their payments worth millions of rupees are being deferred by mill owners.

He said that due to a fall in cotton yarn prices in the world market, spinners are unwilling to pay their dues, while some of them have even asked the ginners to either take back their stocks or to wait till the situation turns better.

If the ginners choose to lift back their stocks from spinners, this would cause them to suffer loss of millions of rupees, which may equal to almost 50 percent of their actual investment, Mr. Ehsan said.

He also voiced his apprehension that as cotton output for the current season is expected to surpass the 15 million bales mark, this may lead to further reduction in cotton prices.

In view of the prevailing situation, Mr. Ehsan urged APTMA and other stakeholders to workout a viable solution to safeguard the ginners from falling prey to financial crunch and subsequent closure.

He said that financial crisis would not allow several ginners to embark on their businesses in the forthcoming season.

Hence, he called upon the Government to launch Trading Corporation of Pakistan (TCP) as third buyer in the market so as to bring an end to the monopoly of textile mill owners and traders.

He said this step would also safeguard the interests of the cotton growers who have cultivated 15 million bales this year to enable the country to gain self-reliance in cotton.

Mr. Ehsan stated that prior to this, it has never happened in the history of Pakistan that cotton prices witnessed a fall of Rs. 8,000 per maund within a short duration of just four months.

Fibre2fashion News Desk - India

Must ReadView All

(L-R) Mr Shao Bojin, Chairman of Jihua Group and Mr Rohit Aggarwal, President of Huntsman Textile

Textiles | On 28th Oct 2016

Huntsman gets into strategic partnership with Jihua Group

Huntsman Textile Effects, the leading provider of high quality dyes...

Marzoli FT6D roving frames in Sintex’s Unit 2. Coutresy: Marzoli

Textiles | On 28th Oct 2016

Marzoli roving frames erected at Sintex textile division

A total of 48 Marzoli roving frames were erected in units I, II and...

Courtesy: Polartec

Textiles | On 28th Oct 2016

Polartec innovates most breathable waterproof fabric

Polartec, the premium provider of innovative textile solutions, has...

Interviews View All

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Robert Brunner

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search