Non-interference in the free-market mechanism beyond July 26 is what the farmers, ginners, spinners and the value-added textile producers are expecting from the government.
Pakistan Cotton Forum (PCF) Chairman, Seth Muhammad Akbar recently said that, the vested quarter, which is actively criticising other sectors of the textile industry, so as to get their own means right, should now refrain from getting into such practices.
The Chairman further stated that, leading stakeholders are closely monitoring the situation and that they would not allow the policymakers to become a puppet, swinging as per the directions of just a few supplementary industries with vested interest.
The proposal to cap purchase of cotton to two months requirement was discarded by the forum, which marked it to be a catastrophe for both the cotton market as well as for the textile sector, he said.
The industry not only yields but even secures their annual requirement of cotton within a period of just four to five months. If the proposal to impose a ceiling on acquisition of cotton by the spinners is accepted, then the farmers and ginners will be compelled to hold the residual stock that too with their insufficient financial resources and means, informed the Chairman.
He further stated that, neither the Trading Corporation of Pakistan (TCP) nor any other government agency in Pakistan is financially sound and capable enough to buy cotton crop and maintain the same as stock, as this involves an investment of around Rs 350 billion.
Fibre2Fashion News Desk - India