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KCA advises Pak govt to build buffer stock of cotton
01 May '12
2 min read
As part of its suggestions for Federal Budget 2012-13, the Karachi Cotton Association (KCA) has asked the Pakistan Government to reserve a minimum two million bales of cotton as buffer stock so as to effectively cater to domestic demand.
The KCA Brokers Forum suggested that the Government should procure cotton for building buffer stocks through 320 licensed cotton brokers of KCA.
KCA urged the Federal Finance Minister Dr. Hafeez Shaikh to kick off hedge trading through KCA floor, as the Government already granted its approval for the same in March 2005.
The association stated that on February 28, 2008 during an All Pakistan Textile Mills Association (APTMA) meeting in Lahore, former Securities and Exchange Commission of Pakistan Chairman announced that the hedge trading contracts would start within four months, but the promise is yet to see the daylight.
The Forum said that lacking hedge trading, cotton market experienced sharp price and supply volatility, which led to defaults in domestic trade as well as in exports.
The Forum also suggested that the Government should ensure adequate availability of quality cotton seeds, and execute the agreement entered into with Monsanto in April 2010 for introduction of Bollgard-II (BG-II) technology in the country.
It said implementation of the long-awaited accord for introduction of cottonseed technology BG-II and RRF in the country calls for a comprehensive study and research to deliberate on the contents of the Memorandum of Understanding (MoU) signed to this effect.
The MoU entered into between the Government of Pakistan and Monsanto, extends a framework for continuing deliberations aimed at introducing Bt cotton in Pakistan.
In its proposals, KCA also asked the Government to ensure free cotton trade with India to protect the interest of stakeholders of both the countries.
The KCA Brokers Forum suggested that the Government should procure cotton for building buffer stocks through 320 licensed cotton brokers of KCA.
KCA urged the Federal Finance Minister Dr. Hafeez Shaikh to kick off hedge trading through KCA floor, as the Government already granted its approval for the same in March 2005.
The association stated that on February 28, 2008 during an All Pakistan Textile Mills Association (APTMA) meeting in Lahore, former Securities and Exchange Commission of Pakistan Chairman announced that the hedge trading contracts would start within four months, but the promise is yet to see the daylight.
The Forum said that lacking hedge trading, cotton market experienced sharp price and supply volatility, which led to defaults in domestic trade as well as in exports.
The Forum also suggested that the Government should ensure adequate availability of quality cotton seeds, and execute the agreement entered into with Monsanto in April 2010 for introduction of Bollgard-II (BG-II) technology in the country.
It said implementation of the long-awaited accord for introduction of cottonseed technology BG-II and RRF in the country calls for a comprehensive study and research to deliberate on the contents of the Memorandum of Understanding (MoU) signed to this effect.
The MoU entered into between the Government of Pakistan and Monsanto, extends a framework for continuing deliberations aimed at introducing Bt cotton in Pakistan.
In its proposals, KCA also asked the Government to ensure free cotton trade with India to protect the interest of stakeholders of both the countries.
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