PCGA threatens to abandon 'phutti' procurement

Central executive committee of Pakistan Cotton Ginners Association has warned government that ginners would stop procurement of 'phutti' protest if Trading Corporation of Pakistan does not start purchase of one million bales of cotton from January 10, 2012.
The CEC, chaired by its chairman, Amanullah Qureshi ratified the decisions of the chairman to dissociation from Pakistan Cotton Forum, boycott of procurement of raw cotton from the growers and demand for immediate removal of federal secretary, textile who was serving the interest of textile millers.
The CEC said that PM Syed Yousuf Raza Gilani took the matter seriously when it came to his knowledge that about two million bales of cotton were dumped in the ginneries and farmers were incurring losses due to the cartel of the textile millers. Then, he invited a delegation of PCGA to listen to their problems. Upon this Prime Minister highly convinced to ask the Trading Corporation of Pakistan to purchase at least one million bales of cotton from the ginners as third buyer to break the monopoly of the textile mills. PM ordered secretary finance to make arrangements for the procurement of the cotton. He said that Economic Co-ordination Committee has to approve the procurement of cotton through TCP but secretary textile did not submit the file before the committee deliberately.
Amanullah said that PM was sincerely endeavouring to save the farmers from financial losses due to the cartel of textile millers. He, according to them, allowed the TCP to purchase at least one million bales of cotton lying in the ginneries and PM also issued instructions to ministry of Finance to release the sufficient funds to meet this task. However, it was subject to approval of ECC. Since the international market had surged to 95 cent/lbs they would not sell their cotton at the lowest rate and they would force the buyers to purchase at Rs 7000 to 7100/ maund. He asked the ginners not to sell their stock at Rs 5500 because international market would further surge up.
He said that PM has not only asked the federal secretary finance Dr Waqar Masood on December 20th to release funds to TCP for the purchase of one million bales of cotton dumped in the ginneries but also informed the house of parliament about this step.
PM assured that ginners grievances would be redressed on top priority basis and interest of the growers would be safeguarded in all cases. The support price of cotton was to be fixed on January 3rd in the meeting of ECC besides approval of PM's orders. Prime minister also assured to grant a relief package to the ginners of flood-hit areas of Sindh province so that they could stand on their own feet.
Amanullah said that they also called on the federal secretary finance to expedite the procurement of cotton through TCP. He said that about two million bales are lying in their stock and another 2.7 million are awaiting process of ginning and they are unable to purchase more cotton from the growers because their bank limits had ended. He said that keeping in view the country's political and economic conditions, PCGA had postponed its protest drive on the assurance of Prime Minister and member of the parliament but bureaucracy played its game to defame an elected government.
He said that thousands of cotton growers of southern Punjab would be forced to come on roads and to shout slogans against the present regime in the situation created by the bureaucracy. Briefing journalists, Amanullah said, "We would safeguard the interest of the growers who run the entire textile industry from ginneries to textile mills and readymade garments industry. If the growers stop to cultivate cotton then there would be no export of textile goods worth $13 billion.
He said that the government should prohibit import of cotton from India via Wagha Border because it is mere wastage of foreign exchange.There is ample stock of two million bales in the ginning factories. The meeting was attended by Mukhtar Khan Baloch, Malik Muhammad Akram,Haji Muhammad Ibrahim,Nawab Shehzad Ali Khan, Shaikh Muhammad Saeed, Khalid Hanif Lodhi,Rao Sadaruddin, Malik Ghulam Mustafa Khandwa.