With an aim to stabilize the cotton prices, the Pakistan Cotton Ginners Association (PCGA) has requested the Government to direct the Trading Corporation of Pakistan (TCP) to buy cotton from the ginners as third party buyer.
PCGA is apprehending that if the cotton prices do not stabilize, textile traders and other buyers may take undue advantage of the situation.
PCGA Chairman, Amanullah Qureshi, said as cotton prices are on a decline in global market, the Government should introduce measures to protect the farmers and ginners against any financial loss.
Mr Qureshi contended that in order to keep the market under pressure, the textile industry was releasing exaggerated data of domestic production and consumption. He stated that as per PCGA's expectations, annual cotton production for the current year was likely to come to 14 million bales, while the domestic consumption would not be below 14.5 million.
Besides domestic consumption, Turkey and China have each expressed interest in importing five million bales of cotton, he said. Mr. Qureshi also informed that 0.6 million bales of cotton were exported by private players during last year and they are expected to export similar quantity this year too.
Currently, cotton rates are prevailing at PKR 7,000 per maund in international market, while the prices in the domestic market are around PKR 6,400 to 6,500 per maund, the PCGA Chairman said.
He added that as TCP steps in as third buyer, this would buoy up the cotton prices, while not allowing the textile industry to take undue advantage of the situation.
Fibre2fashion News Desk - India
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