The government is likely to approve the rate of cotton, at which the Trading Corporation of Pakistan (TCP) would purchase one million cotton bales, in the upcoming meeting of the Economic Co-ordination Committee (ECC). Well-placed sources told Business Recorder here on Saturday that no doubt 90 percent of cotton bales have arrived domestic market, but there still remain 1 million cotton bales with the growers while 1.5 million bales are still with the ginners.
So, 2.5 million bales in total are still present to be brought to the domestic market. "The delay in purchase of 1 million cotton bales by TCP has already made the growers face the loss worth Rs 1 billion due to much lower prices of commodity in the local market than the cost of production", sources said.
Due to much lower cotton prices in the domestic market, the Pakistan Cotton Ginners'' Association (PCGA) had decided to go on strike demanding of the government to direct the TCP for the purchase of cotton to increase the prices of commodity in the domestic market. Later after having a meeting with the Finance Minister, Abdul Hafeez Sheikh and the Secretary Finance, Dr Waqar Masood, the PCGA decided to change its decision as it was assured by the Association that in the meeting of ECC that was supposed to be held on January 10 would definitely fix the rate at which the commodity would be sold to TCP. But as the Secretary Textile, Shahid Rasheed did not present the case in ECC the matter got delayed.
Sources added that the TCP and the Ministry of Textile have decided to fix the rate of cotton per mound at Rs 6500. It means that TCP agrees to purchase cotton from the domestic market at Rs 6500 per mound.
According to the sources, Pakistan is being expected to import 1 million cotton bales for the current fiscal year 2011-12. "Almost 7 lac tons cotton has already been exported. The country is expected to earn $ 3 billion this year through the cotton export", sources revealed.
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