Despite huge flood damages: country may meet revised cotton target in fiscal year 2012

Despite huge losses to the cotton crop in the flood-affected areas of Sindh, the country is likely to meet the revised cotton production target during the current fiscal year 2011-12. Well-placed sources told Business Recorder here on Thursday that the revised cotton production target was worked out by the Cotton Crop Assessment Committee (CCAC) at 12.6 million bales for the current fiscal year with 170kg weight per bale.
"The target would be met as according to the recent report of the Pakistan Cotton Ginners' Association (PCGA) dated January 1, the arrival of cotton in the domestic market has reached 12.03 million bales that was just 10.2 million bales during the same period last year, showing an increase of 17 percent," sources disclosed.
According to the report, the arrival of the cotton bales has reached 9.6 million bales in Punjab that was 6.7 million bales during the corresponding period last year. The arrival of the cotton bales in the ginning factories of Sindh is recorded at 2.4 million bales that were 3.4 million bales during the same period last year. The reduction in the arrival of bales compared to the last year can be attributed to the crop damaged due to recent floods.
The report points out that the total unsold stock of cotton with the ginners was 1.6 million bales while that was 1.1 million bales during the same period last year. PCGA Chairman, Amanullah told Business Recorder that as per the directives of the Prime Minister, Gilani, the Trading Corporation of Pakistan (TCP) was bound to purchase 1 million bales to adjust prices of the commodity in the domestic market according to the international standards. "The recent meeting of the Economic Co-ordination Committee (ECC) was supposed to approve the purchase of cotton by TCP but the committee was not presented by Secretary Textile, Shahid Rasheed and now the matter of approval has been postponed to the next ECC meeting," the chairman said.
"We will stop purchase of phutti from the growers if the ECC did not approve the purchase of cotton through TCP during its next meeting that was supposed to be held on January 10," the chairman added. He said that All Pakistan Textile Mills Association (Aptma) is the main hurdle creator behind the scene. "TCP has no objection regarding the purchase of cotton as it has already moved its file to the textile Ministry in which it has adjusted the purchasing price of cotton to be Rs 6500/mound and of phutti at Rs 3000 per mound. TCP has assured me that after getting the green signal from the ECC and the release of funds from the Ministry of Finance, TCP would immediately start purchasing cotton".
When this scribe contacted Aptma Chairman, Mohsin Aziz, he said, "PCGA wants to pocket more profit with the purchase of cotton through the TCP. 60 percent cotton bales have already reached the market and the purchase of cotton by TCP would not provide any financial benefit to the growers, but just the ginners who are actively playing their role as middleman to grease their palms".