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TCP awaits announcement of cotton support price

13
Nov '08

Recently, it was seen that cotton organizations and related associations were urging Trading Corporation of Pakistan (TCP) to start procuring cotton so as to stabilize the prices.

Reportedly, Ministry of Finance has already granted Rs1 billion to TCP for lifting cotton under the implementation of Cotton Policy through market intervention and ensuring fair returns to cotton growers.

However, Mr Muhammad Akram Chaudhry, Chairman of Pakistan Cotton Ginners Association (PCGA), told Fibre2fashion, “TCP has not yet started purchasing cotton because support prices have not been announced.”

Ministry of Food, Agriculture and Livestock (MINFAL) is expected to sort out administrative and price mechanisms in next few days, and give TCP a nod to kick off its operations.

Experts said, 75,000 bales can be purchased by TCP with the Rs1 billion funds. But, pressure on growers will be eased only if around 100,000 more bales are lifted.

Mr Chaudhry further informed, “A meeting has been schedule today at our headquarters in Multan, where the situation of cotton industry will be discussed and support prices will be fixed accordingly.”

Official data showed current price level of the phutti is around Rs1,500-1,600 per maund, while that of cotton is in the range of Rs3,200 per maund.

The Chairman stated, “We have demanded, on behalf of the growers, that support price for phutti should be not less than Rs1,800 per 40 kilograms and that for cotton is 3,500 per maund.”

Fibre2fashion, News Desk - India

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