President Asif Ali Zardari turned down the request of Pakistan Cotton Ginners Association (PCGA) for calling Trading Corporation of Pakistan (TCP) to intervene as second player to support cotton prices in the country.Sources in the Ministries of Finance and Textile Ministry said on Friday during a Video Conference with the members of the PCGA, Zardari asked them to revive their market strategies and common goals to benefit textile sector of the country.“How can the government help the lint sector with more than Rs 300 billion worth besides it is running affairs on its own as an independent entity in the country,” the president questioned.
“We are here to serve the industry and common man in a manner to provide them maximum benefits,” he asserted.
President asked, “When ginning sector of the country was enjoying the highest ever price of cotton some months back, they did not bother how the textile sector will bear such high prices for their value addition.”
He said the government has no additional funds to support falling prices through TCP as second buyer.
The cotton prices went on record high when they touched above Rs 14,500 per maund in the country. A spokesman of PCGA said the body demanded the government to announce support price like wheat in order to safeguard the interests of ginners and growers.
He said the ginners have more than 4 million cotton bales to offer as the payment to farmers and growers to the tune of billions of rupees has been stuck up with the ginning sector. He said in hard times, ‘States’ interventions start in China and India in order to support cotton prices besides to bring stability in their respective markets.
Commenting on the situation, fibre analyst at Karachi Cotton Association said the stand of President Zardari was in the interest of textile sector, which caters around 63 percent of the total foreign exchange earning for the country.
Ahmad said on the other hand the IMF conditions are relevant in taking decision by the government for lifting any soft commodity including cotton through TCP.
“The Planning Commission has submitted a report to Prime Minister, Syed Yousuf Raza Gilani on implementation programme on the directives of IMF, in which support price for commodities including cotton is out of sight,” he added.
He said there are reports that government would keep trading open and would probably not involve in providing support to cotton and other agriculture sectors.
Today the physical prices of cotton have declined up to Rs 3,000 per maund in wake of plentiful influx of cottonseed besides grade issue, which was not acceptable to textile sector, in need of fine lint for quality value addition exports, Ahmad added.
The country is heading towards a bumper crop in crop season 2011-12 to around 14.8 million bales.
There are reports a joint meeting of Textile Ministry, Ministry of Food and Agriculture and Commerce Ministry will be held to look into the matter.
A second meeting of Cotton Crop Assessment Committee held on November 23, in consultation with the relevant stakeholders.
“We are here to serve the industry and common man in a manner to provide them maximum benefits,” he asserted.
President asked, “When ginning sector of the country was enjoying the highest ever price of cotton some months back, they did not bother how the textile sector will bear such high prices for their value addition.”
He said the government has no additional funds to support falling prices through TCP as second buyer.
The cotton prices went on record high when they touched above Rs 14,500 per maund in the country. A spokesman of PCGA said the body demanded the government to announce support price like wheat in order to safeguard the interests of ginners and growers.
He said the ginners have more than 4 million cotton bales to offer as the payment to farmers and growers to the tune of billions of rupees has been stuck up with the ginning sector. He said in hard times, ‘States’ interventions start in China and India in order to support cotton prices besides to bring stability in their respective markets.
Commenting on the situation, fibre analyst at Karachi Cotton Association said the stand of President Zardari was in the interest of textile sector, which caters around 63 percent of the total foreign exchange earning for the country.
Ahmad said on the other hand the IMF conditions are relevant in taking decision by the government for lifting any soft commodity including cotton through TCP.
“The Planning Commission has submitted a report to Prime Minister, Syed Yousuf Raza Gilani on implementation programme on the directives of IMF, in which support price for commodities including cotton is out of sight,” he added.
He said there are reports that government would keep trading open and would probably not involve in providing support to cotton and other agriculture sectors.
Today the physical prices of cotton have declined up to Rs 3,000 per maund in wake of plentiful influx of cottonseed besides grade issue, which was not acceptable to textile sector, in need of fine lint for quality value addition exports, Ahmad added.
The country is heading towards a bumper crop in crop season 2011-12 to around 14.8 million bales.
There are reports a joint meeting of Textile Ministry, Ministry of Food and Agriculture and Commerce Ministry will be held to look into the matter.
A second meeting of Cotton Crop Assessment Committee held on November 23, in consultation with the relevant stakeholders.
