The Farmers Association of Pakistan (FAP) and Pakistan Cotton Ginners Association (PCGA) have joined hands to move Federal Shariah Court (FSC) against hedge trading in cotton. The FAP and PCGA have identical views and strongly believe that the new mode of business for cotton is against their interests. The government has taken the decision in favour of cotton hedge trading in isolation. It did not consult two important stakeholders of cotton sector - the PCGA and FAP - at any stage, they said. The PCGA and FAP slammed the government to keep them out of consultation process for the new mode of cotton business.
Talking to Business Recorder on Wednesday, FAP chairperson Rabia Sultan said that certain groups wanted hedge cotton trade to exploit the market at the cost of small stakeholders, and the farming community would resist the move tooth and nail.
She added that her association would oppose hedge cotton trade at every forum, including the court of law.
Rabia said: "Hedge trading for cotton was not acceptable to the farming community that is the major stakeholder, and it would go to any extent to resist the move."
She wondered as to why the government was favouring hedge cotton trade when majority of stakeholders is opposing it.
The PCGA is opposing hedge trading in cotton market. Its central executive committee had unanimously announced to move FCA against hedge cotton trade in one of its meetings. The CEC of the PCGA authorised chairman Ibrahim to hold talks with other stakeholders of cotton sector to muster support for PCGA against hedge cotton trade.
The committee also passed a resolution against the new mode of cotton business. It said that hedge cotton trade was a double-edged sword for the ginners and they would take up the matter at the highest level and at the same time would move FSC against it.
Ibrahim said that PCGA was discussing the issue with All Pakistan Textile Mills Association (Aptma) to form greater alliance of the stakeholders against hedge trading in cotton market.
He said the PCGA was seriously concerned over the government decision to restart hedge trade in cotton. He added that KCA was behind the move and its sole purpose was to provide an opening to a particular group for market distortion.
He said the PCGA has sought Prime Minister Shaukat Aziz's intervention into the matter and suggested him to call a meeting of all the stakeholders of cotton sector on hedge trading. He claimed that all stakeholders, with the exception of KCA, were against hedge trading in cotton.
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