Presidency defers cotton policy finalisation

The presidency has deferred finalisation of cotton policy for current season until return of Chairman All Pakistan Textile Mills Association (APTMA) Gohar Ejaz from abroad. Reliable sources from Ministry of Textile informed Business Recorder that a meeting on current cotton season price policy was due on July 29 at the presidency.
However, the presidency has advised the Ministry to defer the meeting until the return of Gohar Ejaz, who is currently out of country on business trip and likely to return on 1st of August. It may be noted that the cotton farmers have already heaved a sigh of relief on the federal government''s intent of intervening the market and not letting the cotton market go below international parity. Resultantly, the cotton prices have shot up to Rs 6,000 per maund from earlier Rs 4,000 per maund with reports that the government may announce support price of Rs 7,000 per maund for the current season.
The cotton farmers are highly depressed and under deep pressure these days due to dwindling cotton prices, internationally and domestically. However, the adverse business environment in the country has added fuel to the fire, as the textile industry is facing 28 percent gas curtailment in Punjab where majority of textile mills locate. The cotton farmer is desperate to get reasonable price for its crop, being devalued by the market manipulators.
It may be noted that the textile industry is already carrying stocks of last crop season amidst entry of some four million bales to the local market in August and September. It is also noteworthy that the international buyer is blackmailing the industry separately. However, the market rebounded on reports regarding government''s intent to intervene the market in the larger interest of cotton farmers.
Interestingly, the Chairman APTMA has been strong critic of government intervention to the free-market mechanism, resulting into transfer of some Rs 4 billion to cotton farmers and a record textile export of $14 billion. Therefore, the presidency has advised to defer the cotton policy for current season until his return in order to ensure a collective wisdom before reaching to any conclusion, said Ministry officials.