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Heavy rains delay cotton season in Pakistan
Sep '11
The cotton harvesting season has been delayed due to heavy rains in the cotton growing belts of Pakistan, said a top official of Pakistan Cotton Ginners Association (PCGA).

Mr Shehzad Ali Khan, Vice Chairman, PCGA told fibre2fashion that the cotton season has been delayed by 15-20 days due to the uncertain rains in parts of Pakistan.

However he was elated over the fact that the with-holding tax has been withdrawn and the matter has been settled. He said, “The gross one percent commission that we give to the supplier of raw cotton (phutti), will be paid to the government and the rest will be given as commission to the supplier”.

He continued by saying, “The with-holding tax was basically imposed on the traders. It was earlier imposed on items other than only cotton. Besides, cotton (phutti) is such a commodity which cannot be stored whereas produce like rice, sugarcane, sunflower, pulses can be stored due to their property of moisture retention.

“Ginned or processed cotton can still be stored but raw cotton cannot be stored in warehouses. It comes directly to our factories through farmers. There is a trader or middleman in this transaction, who takes his one percent commission and plays his role.

“The policy was made for agriculture but it does not suit the agriculture of cotton. So, on this basis, the tax had to be withdrawn”, he concluded by saying.

Fibre2fashion News Desk - India

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