The inter-ministerial committee on cotton (ICC) on Tuesday turned down the proposal for increase in Trading Corporation of Pakistan (TCP) lint price by Rs 50 per 40 kg, it is learnt. Sources said the committee was of the view that any upward revision in TCP cotton rate at this point of time, when lint prices in the international market are going down, would be artificial and adversely hit the rates in the open market.
Currently, TCP is buying cotton from the ginners at Rs 2059 per maund. Sources said that growers' representatives had raised the issue of increase in lint price and demanded to revise it to Rs 2109.
The meeting was attended by Commerce Minister Humayun Akhtar, Minister for Food and Agriculture Sikandar Hayat Bosan, Minister for Textile Industry Mushtaq Ali Cheema, Secretary Commerce Tasneem Noorani and Chairman Trade Corporation of Pakistan (TCP) Masood Alam Rizvi.
A three-member Pakistan Cotton Ginners Association (PCGA) delegation comprising chairman Mohammad Ibrahim, Sh Saeed and Sh Farooq informed the committee that cotton arrivals at the ginneries was much better than last year, which indicated a bumper crop this year. The PCGA team appreciated TCP's active role in lint procurement. It also commended opening of TCP godown at Pipri and Multan to expedite process of offloading lint.
Representatives of growers and Aptma gave detailed presentation on cotton production, arrivals, market rates, and future trend.
The committee decided that TCP would offer contracts of up to another 1000 bales to ginning factories which have already sold 2000 bales. It was noted that TCP was ready to buy grade II cotton along with grade III which is already being purchased by it. The committee decided that the case would be referred to the Economic Co-ordination Committee(ECC) for formal approval.
The committee noted with satisfaction that TCP was aggressively buying cotton to help stabilise cotton prices in the market to the benefit of growers. All stakeholders expressed satisfaction over cotton prices in the market and hoped that market sentiment would be maintained at the present level.
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