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Ginners meet govt officials today to resolve crucial issues
06
Aug '08
The office of Agricultural Secretary, hosted a joint meeting of the Textile Ministry and department of agriculture and excise of Sindh and Punjab with Pakistan Cotton Ginners Association (PCGA) today at 12 pm in Lahore.

A total of 1100 member factories of PCGA have suspended operations since August 1 because the textile ministry and agricultural department of Punjab and Sindh have failed to solve issues concerning the ginners. The purpose of the meeting is essentially to bring about concrete solutions to the growing problems in the sector.

Mr Chaudhry Muhammad Akram Jutt, President of PCGA told Fibre2fashion that the two hour strategic meeting will witness the presence of Textile Commission of Pakistan, Agricultural Secretary of Punjab, Secretary of Excise Punjab and six other members from PCGA.

Halting of ginning activities has had its worst effect on growers and suppliers of phutti. This apart, an average of about 200 workers at each ginning unit across the country is rendered jobless. The meeting would therefore discuss issues regarding distribution of ginning license to ginners, refund of payment on excise and other heads and smooth supply of inputs and canal water supply.

Already the sector is paying three percent withholding tax collected from suppliers. Moreover the ginners have also demanded removal of Rs 5 per bale tax in Sindh and Punjab.

Cotton prices in the recent times have touched Rs4,400 per maund while spot rates at Karachi Cotton Association (KCA) also stood at a record high of Rs4,300 per maund yesterday. Quite obviously, textile and spinning units in the country have slowed down their production due to restricted supply of cotton.

Demand from the textile sector stands at around 15.5 million bales, while mills had only purchased about 7.2 million bales. Even exporters fear cancellation of cotton export orders due to shutting down of ginning factories.

It is hoped that the meeting would come up with substantial outcomes in favor of the ginners and bring about solutions to the existing crisis.

Fibre2fashion News Desk - India


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