PM orders TCP to buy 1m bales of cotton

RECORDER REPORT

MULTAN: Prime Minister Yousuf Raza Gilani has ordered the Trading Corporation of Pakistan (TCP) to procure one million cotton bales to stabilise cotton prices, and invited a delegation of Pakistan Cotton Ginners Association (PCGA) to meet him in Islamabad on Monday to set the support prices of seed-cotton (phutti) and ginned cotton.

This decision was taken in the larger interest of both growers and ginners for early disposal of stock of two million bales. Briefing media men here on Sunday, Amanullah Qureshi, chairman of PCGA, said that the Prime Minister had entertained their request and turned down the plea of All Pakistan Textile Mills Association (Aptma). "We have asked the Prime Minister to fix cotton prices at Rs 6000/maund, and phutti at Rs 2500/maund.  The delegation of PCGA will comprise of Amanullah, Vice Chairman Mukhtar Ahmed, PCGA ex-chairmen Muhammad Akram, Muhammad Ibrahim, ex-vice chairmen Shehzad Ali Khan, and Mahesh Kumar.

PCGA's central executive committee had sent an SOS appeal to the Prime Minister to save cotton growers and ginners from financial losses, as the textile millers have created a cartel to keep the prices at the lowest level in spite of the fact that New York and other markets prices are stable and higher than Pakistan. It suggested that the government should ask the Trading Corporation of Pakistan (TCP) to play its role as third buyer to break the cartel of the spinners, weavers and other textile miller.

He stated that PCGA had earlier informed about the huge financial loss being incurred by cotton growers and ginners to President Asif Ali Zardari, Prime Minister Yousuf Raza Gilani, and several federal and provincial ministers. He explained that the ginners are at the mercy of All Pakistan Textile Mill Association (Aptma), the only buyers.

The monopoly of the textile manufacturers results in maintaining cotton prices at lower levels, which is to the detriment of millions of cotton growers in the country.