Home / Knowledge / News / Textiles / Cotton ginners reneging on contracts with TCP
Cotton ginners reneging on contracts with TCP
08
May '09
The cotton ginners in the country have cancelled contracts signed with the state owned Trading Corporation of Pakistan (TCP), as cotton prices are rising in the domestic markets. Prices of cotton have zoomed past the minimum support price of Rs 3,202 per maund.

Since the beginning of the cotton season in November, cotton prices have been ruling at unusual lows, due to the impact of the recessionary trends which led to a slowdown in the economy. Add to that was the credit squeeze which kept away the mills from the markets.

The government had directed TCP to intervene in the market in a bid to stabilize prices and signed purchase contracts for 590,000 bales of which it took delivery of only 190,000 bales. The rest of the contracts stand cancelled due to the increase in prices.

In a order to get a clear understanding of the situation, Fibre2fashion spoke to Mr. Muhammad Akram Chaudhry, Chairman, Pakistan Cotton Ginners Association (PCGA) who said, “Prices of cotton started reached to the extent of 3,700 per maund in open market in Pakistan”.

“Hence in order to earn more profit, cotton ginners cancelled the contracts with TCP, since TCP is only offering 3,200 per maund to cotton ginners. The main reason for this price rise in the open market is due to cotton production dipping below government set targets”, he said.

He added by saying, “The target set for year 2008-2009 was around 12.1 million bales, whereas actual production, as per announcement on May 3 stands at 11.3 million bales, a shortfall of 800,000 bales, which has led to prices spurting in open markets”.

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 29th Apr 2017

Textile sector may have uniform GST rate: Irani

The textile sector could have a uniform Goods and Services Tax (GST)...

Textiles | On 30th Apr 2017

Government revamping tech mission on cotton

Indian Government is working to revamp the technology mission on...

Apparel/Garments | On 30th Apr 2017

Columbia Sportswear records Q1 net sales of $543.8 mn

Columbia Sportswear Company has announced record net sales of $543.8...

Interviews View All

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

Productivity, creativity and innovation play a vital role in the growth of ...

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

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

news category


Related Categories:
April 2017

April 2017

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

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X