Delay tenders for cotton sales, asks Warraich of PCGA

03 Apr '06

2 min read

Chaudhry Muhammad Azam Warraich, Chairman, Pakistan Cotton Ginners Association (PCGA), has requested the Government to adjourn the tender it had called for selling 220,000 cotton bales until mid-June so as to save ginners from going bankrupt.

He also suggested that a detailed investigation should be carried out to determine why the lowest price of Rs2309 per 40 kilogram was approved even though the activity in domestic as well as international markets was strong.

Warraich held Trading Corporation of Pakistan (TCP) responsible for the sudden dullness in the cotton market and the sharp drop in the prices from Rs2600 to Rs2350 per 40 kilogram resulting in the loss of almost Rs1550 million for the ginners.

He claimed that since All Pakistan Textile Manufacturers Association (APTMA) would have to pay Rs2900 per 40 kg on imported cotton, it had created a situation where it can buy domestic cotton at much lower rates.

He reminded that the PCGA had demanded from the beginning that the TCP should export its stocks or should call tenders in May from the local market.

However, PCGA Chairman believes that the government had taken several measures to ensure for the success of cotton farmers as a result of which, now the cotton is sold at Rs1150 per 40 kg against Rs975 per 40 kilogram.

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