Ginners ask SBP to reschedule loans

The Pakistan Cotton Ginners'' Association (PCGA) has written a letter to the Governor of State Bank of Pakistan (SBP), Yaseen Anwer, to reschedule its members'' loans for making payments to the cotton growers up to coming December, and to waive the mark-up.
Sources told Business Recorder that almost 75-80 percent ginning factories in Sindh have closed their business due to damage to cotton crop in Sindh. "The cotton growers in Lower Sindh were paid Rs 7 billion by the ginners, in advance, for purchase of phutti before the recent floods in Sindh but as 75 percent crop sown on 1.6 million acres in 23 districts of Lower Sindh had damaged on 1.2 million acres, it has become impossible for the growers to provide phutti to the ginning factories as per their commitments. But, on the other hand, the ginners, who have taken loans from the SBP have to repay it. So, they have written a letter to the Bank to reschedule their loans till December.
On the other hand, the textile mill owners are purchasing cotton at comparatively low rates from the ginners. Sources told this scribe: "In international market, cotton is being sold at 90-95 cents/pound and according to international rates, cotton should be purchased at Rs 7000 per maund but the textile millers are purchasing it at Rs 5000 per maund. This is less than even the cost of the production of the crop. Similarly, phutti is being purchased at Rs 2300 per maund while its price should have been Rs 3000 per mound".
Sources said that the PCGA would hold a meeting on coming Monday in Multan where it would be decided whether to go for a strike or not till the government fulfills their demands.
They said that 175 out of 250 ginning factories were badly hit in recent floods and rains in interior of Sindh while it had become compulsory for the survival of both ginners and cotton growers that the Trading Corporation of Pakistan (TCP) should come forward to purchase cotton as the second buyer otherwise the next year cotton production would reduce by 10-15 percent.