KARACHI: The Pakistan Cotton Ginners Association (PCGA) has announced a historic strike in the country’s ginning factories for the first time.
According to the PCGA Chairman, the strike has been postponed for a month. Edible oil, ghee, flour mills, rice mills, and textile sector owners are protesting. The government is showing negligence in resolving traders’ issues. After the strike, cotton prices have risen to Rs 17,700 to 18,000 per maund. There are reports of a decline in cotton production in Punjab.
During the general body meeting of the Pakistan Cotton Ginners Association (PCGA) held last Sunday, a decision was made to protest against the government’s imposition of unjust taxes on ginning factories, the increase in electricity tariffs, and the fixed tax by shutting down all ginning factories across the country for an indefinite period. This is the first time in the country’s history that the ginning factories have organized a strike.
Cotton growers, middlemen, and traders stood in solidarity with ginners, staging protest rallies in several cities. The sound of the successful strike call was heard in in the power corridors.
The government should immediately accept the demands of the ginners otherwise, the situation will escalate further. According to the PCGA Chairman, the strike has been postponed for a month.
According to reports received from Punjab, cotton cultivation is reportedly very low. In some areas of Sindh, there are reports of wheat cultivation, but cotton crops are relatively unaffected. Moreover, rainfall in Sindh and Punjab will have a positive impact on crops if it is not excessive and water does not stagnate in fields. Currently, ginners who had stored cotton are selling it as urgent delivery, but there are few buyers. However, after the strike ends, many mills are showing interest in purchasing.
In Sindh, the cotton price per maund has decreased from Rs 19,000 to Rs 17,700-18,000 per maund while the phutti price ranges from Rs 7,800 to 8,000 per 40 kg.
In Punjab, the cotton price has dropped from Rs 19,500-19,800 to Rs 18,500-19,000 per maund, with the phutti price remained around Rs 8,500-8,800 per 40 kg.
Meanwhile, the Karachi Cotton Association’s Spot Rate Committee has increased the spot rate by Rs 500 per maund and closed it at Rs 18,500 per maund.
The Chairman of the Karachi Cotton Brokers Forum, Naseem Usman, stated that the international cotton market has shown cumulative stability. According to the USDA’s weekly export and sales report, more than 90,000 bales were sold for the year 2023-24.
China purchased 20,000 bales and is on top of the list followed by Pakistan with 16,700 bales, and Vietnam on number three with 13,600 bales.
A total of 67,600 bales were sold for the year 2024-25. China again is on top of the list with 35,600 bales, followed by Guatemala with 10,700 bales, and Vietnam is on number third with 7,900 bales.
Meanwhile, PCGA Chairman Waheed Arshad said, ‘I am extremely grateful to all my friends, including Sindh’s ginners and Punjab’s ginners, who supported my call and made my strike and effort successful. Thanks to God, we have emerged victorious.
I have postponed the strike for a month, as requested by the Sindh Abadgar leadership and Khalid Mahmood Khokhar, President of Pakistan Kissan Ittehad. We will visit Islamabad next week, meet with people. Khalid Khokhar has assured us of his full cooperation.
Similarly, other farmer brothers have also assured us of their full cooperation.
I am again grateful to all my friends, the Oil Mills Association, Malik Munir, President Chamber Zulfiqar Ali Mian.
I am also great full to the the presidents of the grain markets, Rai Ehsan who is the president of the Punjab Grain Markets, President Chamber Mian Rashid Iqbal and the Brokers Association, who made our strike and effort successful.
We will now formulate a plan of action and call a general body meeting. After that, we will agree on the decision made by the majority vote.
For now, all friends should continue their business so that farmers are not exploited. Farmers are already suffering due to wheat and corn.
Copyright Business Recorder, 2024
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