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PCGA to stop 'seed cotton' purchase from Dec 10
09 Dec '11
2 min read
The Pakistan Cotton Ginners' Association (PCGA) has announced that it will stop purchase of seed cotton (Phutti) from December 10 as the Government is reluctant to order Trading Corporation of Pakistan (TCP) to procure a minimum of one million bales at international prices.
Mr. Amanullah Qureshi, Chairman of PCGA, said the cotton ginners in Pakistan are forced to halt the purchase of Phutti because the Government has failed to help the ginners, who have around two million bales of stock piled up with them.
Pointing out that the Government has not announced any attractive bailout package for the ginning industry, he said, the harsh step was being taken to protect the ginners from becoming bankrupt.
He stated that PCGA had earlier informed about the huge financial loss being incurred by the cotton growers and ginners to President Asif Ali Zardari, Prime Minister Syed Yousuf Raza Gilani, and several Federal and Provincial ministers.
He explained that the ginners are at the mercy of All Pakistan Textile Mill Association (APTMA), the only buyer. The monopoly of the textile manufacturers results in maintaining cotton prices at lower levels, which is to the detriment of millions of cotton growers in the country.
He stressed if the Government did not issue instructions to TCP to buy at least one million bales of cotton, it would ruin the ginners as well as cotton growers.
The PCGA Chief informed that banks have stopped issuing further debt-limits to ginners and hence, they are now not in a position to purchase Phutti from growers on cash terms.
He even asked the Government to fix PKR 6000 per maund as minimum support price for cotton.
Mr. Amanullah Qureshi, Chairman of PCGA, said the cotton ginners in Pakistan are forced to halt the purchase of Phutti because the Government has failed to help the ginners, who have around two million bales of stock piled up with them.
Pointing out that the Government has not announced any attractive bailout package for the ginning industry, he said, the harsh step was being taken to protect the ginners from becoming bankrupt.
He stated that PCGA had earlier informed about the huge financial loss being incurred by the cotton growers and ginners to President Asif Ali Zardari, Prime Minister Syed Yousuf Raza Gilani, and several Federal and Provincial ministers.
He explained that the ginners are at the mercy of All Pakistan Textile Mill Association (APTMA), the only buyer. The monopoly of the textile manufacturers results in maintaining cotton prices at lower levels, which is to the detriment of millions of cotton growers in the country.
He stressed if the Government did not issue instructions to TCP to buy at least one million bales of cotton, it would ruin the ginners as well as cotton growers.
The PCGA Chief informed that banks have stopped issuing further debt-limits to ginners and hence, they are now not in a position to purchase Phutti from growers on cash terms.
He even asked the Government to fix PKR 6000 per maund as minimum support price for cotton.
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