PCGA to close ginning units till December 10

ISLAMABAD: Pakistan Cotton Ginners Association (PCGA) has decided to close all ginning factories by December 10, if the Trading Corporation of Pakistan (TCP) do not come forward as a second buyer of cotton as per the directives of the government.

Amanullah Qureshi, Chairman PCGA told Business Recorder that the decision had been taken after meeting of the members of PCGA where it was decided that if the government does not bring forward the TCP till December 10, the PCGA would stop purchase of phutti from the growers.

Textile mills' owners are paying a comparatively meagre amount of money, as price of cotton to the ginning factories, which is almost Rs 500-600/maund less than the cotton price in international market. "The price of cotton in international market is Rs 6200 per maund in Pakistani currency, while All Pakistan Textile Mills Association (Aptma) is purchasing cotton from the ginning factories at Rs 5500/maund that is totally unjust," the chairman said.

He said for the last one month, Aptma is purchasing cotton at comparatively cheaper rates that has made the cotton growers bear the loss of millions of rupees.

Shutting down the ginning factories means that the textile mills would have no alternative to run their businesses except to import cotton that would have a significant increase in their cost of production.

"If textile mills' owners start paying the appropriate amount of cotton to ginners, there would be no need for TCP to come forward as a second buyer," the chairman added.

The PCGA has written a letter to the Governor State Bank of Pakistan (SBP), Yaseen Anwer to reschedule their loans for payments to cotton growers till coming December and to waive off the mark-up against these loans.

"We have received nothing in response from the SBP Governor, so we have written the second letter to him again requesting him to reschedule the loans," Amanullah said.

He emphasised that Aptma should end its monopoly, otherwise, it would have to bear the loss of millions of rupees if the ginning factories stop providing cotton.