Home / Knowledge / News / Textiles / Ginners on indefinite strike, demand MSP for cotton
Ginners on indefinite strike, demand MSP for cotton
27
Oct '08
Ginners, nationwide have suspended purchasing of cotton from the farmers for an indefinite period, the Pakistan Cotton Ginners Association (PCGA) has announced. The suspension will remain in effect till the government announces a minimum support price and start purchasing cotton through the state owned Trading Corporation of Pakistan (TCP).

The association alleged that the government had announced MSP for wheat at the time of its cultivation, but neglected to declare MSP for cotton and on the other hand cotton rates had dropped to their lowest in recent times resulting in 1.5 million bales of cotton lying unsold in godowns of ginneries.

They have appealed to the government to order TCP to purchase cotton from the market to arrest the downfall in prices and at the same time bring relief to the cotton farmers. They have warned that if the above was not done immediately, there were chances that the cotton economy would sink.

They lamented that since the beginning of the economic turmoil and resultant fall in prices of cotton, banks had reduced credit limits to the ginneries which were also resulting in a liquidity crisis and they were unable to purchase cotton from the farmers. The association added by saying that interest rates had also been hiked by the banks and financial institutions by about 4-5 percent.

According to the association, cotton in international markets was trading at a higher price than in Pakistan, but textile mills in Pakistan were offering rates very much below the international rates. They made it very clear that it was not possible for them to sell cotton at Rs 2800-2900 per maund after purchasing the cotton flowers from farmers at Rs 1600-1800 per maund.

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: H&M

Apparel/Garments | On 30th Mar 2017

H&M group's sales increase 7% in 3 months to Feb '17

The H&M group's sales including VAT amounted to SEK 54,369 million...

Textiles | On 30th Mar 2017

India Inc should work for July 1 GST roll out: Fin sec

The Goods and Services Tax (GST) will take India into a very exciting ...

Textiles | On 30th Mar 2017

Lok Sabha approves 4 supplementary GST legislations

The Lok Sabha has approved four supplementary Goods and Services Tax...

Interviews View All

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Sunil Rathore
Lacoste India

‘New vendor is welcome if he offers cost, quality and timely delivery’

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Kai Poehler
Voith Paper GmbH & Co. KG

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

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Ritu Kumar
Label Ritu Kumar

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

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
March 2017

March 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search