KARACHI: Karachi Cotton Association (KCA) has once again asserted its demand for free market policy in cotton trading and rejected any kind of intervention.
"KCA has always advocated free trading policy in cotton that is, free export and import of cotton without any quantitative and qualitative restrictions to ensure international price of cotton to the growers and provide a level-playing field to all sections of the cotton sector of the country ," said a KCA statement here on Wednesday.
It said the KCA strongly believes that under the demand and supply position, the market forces automatically determine the price level and exportable surplus.
The association has expressed its serious concern on the reports in certain sections of the press that the government is likely to procure one million bales of cotton from ginners.
The KCA is of the view that any intervention by the government or any public sector organization in the cotton market would negate the policy of free trading in cotton. This policy is being followed very successfully for past 18 years to safeguard the interest of all the stockholders of the cotton sector including the growers, the statement said.
The KCA recalled that the government of India intervened in the cotton market few years ago and accrued losses by trying to regulate the cotton market and exports. Such intervention was reported to be counterproductive. It disturbed and dislocated the entire cotton trade and industry in India as well as the growers and ginners who also suffered huge losses.
Besides this , the association said , considerable shipments of cotton for exports have not been made by the Indian suppliers and several defaults have occurred in exports of cotton from India. KCA pleaded that the future of stakeholders of cotton depends on continuity of a non-intervention policy of the government in the cotton trade.
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