Ginners say spinners not making Payment

The Pakistan Cotton Ginners Association's Executive Committee member Ehsan-ul-Haq has said that many textile (spinning and weaving) mills owners had purchased huge stocks of cotton during last four months on three month deferred payment when the prices of cotton had reached to Rs 14,000 per maund and they had also promised to pay premium with the actual amount, but now they are dilly-dallying in payment because the cotton prices have fallen to Rs 6800 to Rs 7000 per maund.
In a press statement, he said that scores of cotton ginners are facing severe economic stress due to their millions of rupees payment being withheld. Ehsan said that since the prices of cotton yarn had fallen in the international market, the spinners are reluctant to clear the dues, and some of them have asked the ginners to lift back their stock or wait for "good time".
He said that ginners would have to incur loss of millions of rupees (at least 50 percent of their investment) if they would lift back their stock from the spinning mills. He expressed fear that prices of cotton might fall further because cotton production would surpass the figure of 15 million bales. Ehsan said that Aptma and other stakeholders should come forward to reach any feasible conclusion to save the ginners from economic stress and ruination.
He said that many ginners would not be able to start their business in the new season due to financial constraints. He appealed to the government to introduce Trading Corporation of Pakistan (TCP) as third buyer in the market to end the monopoly of the textile millers and 'beoparis' and to save the farmers who had produced 15 million bales to make Pakistan self-sufficient in cotton. He said that it was for the first time in the history of Pakistan that prices of cotton had fallen by Rs 8000 per maund in only four months.