TCP as alternative buyer KCA expresses serious concerns

Karachi Cotton Association has expressed its serious concern on the reports that government is considering to inducting the TCP as alternative buyer in the market to stabilise the cotton prices. The KCA is of the view that any intervention by the public sector organisation in the cotton market would negate the policy of free trading in cotton, being followed very successfully since past 16 years.
It is being done in order to safeguard the interest of all the stockholders of the cotton economy including cotton growers. KCA has always advocated free trading policy in cotton ie free export and import of cotton without any quantitative and qualitative restrictions in order to ensure international price of cotton to the grower and provide a level playing field to all sections of the cotton economy of the country. It strongly believes that under the demand and supply position, the market forces themselves/automatically determine the price level and exportable surplus.
The association recalled that the government of India intervened in the cotton market last year and accrued losses by trying to regulate the cotton market and exports. Such intervention was reported not only to be counterproductive, but also largely disturbed and dislocated the entire cotton trade and industry in India as well as the growers and ginners who suffered huge losses. Besides, considerable shipments of cotton for exports were not made by Indian suppliers and several defaults occurred in exports of cotton from India.
In order to stabilise the prices of cotton and ensure fair return to the cotton growers, KCA suggested that government provide uninterrupted supply of electricity and gas to the entire textile chain from spinning to processing to allow it to operate at its full capacity. It believed that the future of stakeholders of cotton depends upon the continuation of a non-intervention policy of government in the cotton trade.
In view of the above, KCA strongly urged the government not to make any intervention in the cotton market through the public sector organisation as it would involve huge losses to the government and cause disruption in the cotton economy. It also strongly urged government to announce to continue existing free trading policy of cotton for the benefit off all sections of cotton trade and ensure efficient marketing of cotton.-PR