PCGA urges SBP to issue cotton advances, cash finance

RECORDER REPORT

MULTAN: Pakistan Cotton Ginners Association (PCGA) has appealed State Bank of Pakistan to issue seasonal cotton advances and cash finance for the survival of cotton ginning industry and said that debt of cotton ginners of flood-affected areas be rescheduled beside remission of their mark-up. Similarly, growers' loans should be rescheduled.

Addressing a press conference, PCGA chairman Amanullah Qureshi and former chairmen, Haji Muhammad Akram and Shaikh Muhammad Saeed strongly reacted to Aptma pressure on the government regarding opposing the procurement of cotton on support price through Trading Corporation of Pakistan.

They said that they would be forced to stop the purchasing of 'phutti' from the growers next week (December 10) if the government does not purchase their unsold stock of two million bales till December 10,2011 and an attractive bailout package was not announced for the ginning industry. This harsh step is being taken to save the ginners from being bankrupted, said Amanullah Qureshi.

He said that PCGA had apprised President, Asif Ali Zardari, Prime Minister, Syed Yousaf Raza Gilani, and federal and provincial ministers of its grievances and told them that millions of cotton growers are incurring huge financial loss due to the monopoly of textile sector. He added that they are being fleeced by the only buyer (Aptma) which has developed a cartel to keep cotton prices at the lowest ebb. He warned that this situation would ruin the growers as well as ginners if government did not ask TCP to procure at least one million bales of cotton.

He further said that such elements who are doing this fleecing are the enemies of growers. He said that though the president and premier had assured complete co-operation and redressing of their grievances yet no practical step was taken to stabilise the market.

PCGA chairman said that government has declared flood-hit areas as calamity-affected ones and remitted agricultural loans but no policy was evolved for the rehabilitation of ginning factory of flood-hit areas and farmers of cotton zone. He said that government should announce to waive the mark-up on the debt of ginners and all the loans be rescheduled till December 31, 2011. He suggested that minimum support price of cotton should be fixed at Rs.6,000/ maund and appealed growers not to lend ear to the mongers who were spreading baseless rumours that cotton sector was sinking.

He vehemently condemned such elements particularly brokers and 'beoparis' who are playing key role in pushing the cotton sector towards the darks. He warned the government that farmers would play a decisive role in coming election if government did not redress their grievances and left them at the mercy of beoparis & textile millers then they may cast their right of vote against the present regime. Then there would be no option of even repenting on the mistakes. They said that cotton growers and ginners of Sindh are being fleeced by textile sector because their produce is being purchased on throwaway rates.

Amanullah said that banks have stopped the debt-limits of ginners and now they are unable to purchase the raw cotton (phutti) from the growers on cash. He reiterated his demand to implement on the relief package for ginners of flood hit areas, remit the mark-up on the loans and advances should be made on soft terms and conditions. He said that government should make arrangements for the purchase of low-quality and grade-III cotton immediately otherwise ginners would be forced to stop the purchase of phutti.

He demanded for declaring a national cotton policy with the consent of all stakeholders and that support price of cotton should be announced for the rescue of the sinking growers. He said that More than 14.8million bales of cotton were expected during the current season in-spite of this fact that two million bales were destroyed due to floods in Sindh province. PCGA chairman said that farmers have made huge investment to get bumper crop during this season but Government did not appreciate them.

He also suggested that government should allow export of cotton without any hindrance and there should be no condition of depositing the surety amount and adopting the complicated procedure.