KARACHI: A meeting of the FPCCI Central Standing Committee on “Raw Cotton” was held in the Office of FPCCI, Karachi.
The meeting was presided-over by Muhammad Atif Shakoor Dada, Convener of the Committee and Chairman, the Karachi Cotton Association to consider (i) measures required to increase cotton production and yield per acre (ii) to bring improvement in a quality of cotton (iii) bring cotton bale weight to 170 Kgs+ - 3% (iv) possibilities for Production of low contaminated cotton (v) allow commercial import of Cotton at same Tax Rate (vi) allow import of Cotton from Mali (vii) allow Sales Tax Exemption at ginning stage (viii) to introduce Standard Sale / Purchase Contract of Raw Cotton etc.
The meeting was also attended Rizwan Iqbal Umer, Abdul Jabbar, Muhammad Adil Osawala, Waqas Anwar, Khawaja M. Zubair, Muhammad Naseem Usman, members of the Committee and Aftab Alam, Secretary General, the KCA, Ms. Sumera Beheram, Assistant Manager, Coordination Wing Department, FPCCI and Rizwan, Assistant Manager, IT, FPCCI.
After thorough deliberation / consideration on the above referred issues, the Committee made following recommendations: FPCCI should approach to the Government to take all possible measures to increase cotton production by bringing more area under cotton cultivation and improve quality of cotton to meet the rising requirement of local textile industry and avoid imports of cotton from abroad.
In this regard, the Government should be advised to revamp / gear-up Pakistan Central Cotton Committee (PCCC) / All Cotton Research Institutes to evolve high yield / virus resistance cotton seed variety for cultivation and for the time being, allow import of certified cotton seed from abroad with a view to increase cotton production in the country and ensure availability of raw material to the local textile mills as per their requirements.
The Government should also be advised to reinforce Zoning Scheme and impose ban on cultivation of peddy / sugarcane and setting-up of sugar mills in the areas earmarked for cultivation of cotton. The Government should be advised to ensure implementation of Cotton Control Act in letter and Spirit. This will help to produce low contaminated cotton / improve quality of cotton.
The Government should also be approached to advice the cotton growers and the cotton ginners to switch-over to modern farming and ginning practices to increase cotton production and improve quality of cotton. The Government should be advised to make the cotton ginners liable to ensure Standard Bale Weight of 170Kgs + - 3%.
The Government should be advised to allow the Commercial importers to import cotton from abroad, on behalf of weak textile mills having liquidity problems, at the same tax rate as being charged from the manufacturer exporters. FPCCI should take-up the matter with the State Bank of Pakistan to issue necessary instructions to the Commercial Banks to open L/Cs on priority basis in respect of import of cotton by the manufacturer importers. This will help the local textile mills to meet their requirement of imported cotton timely and fulfill their contractual obligation with their foreign buyers as per contract.
FPCCI should take-up the matter with the Department of Plant Protection, Government of Pakistan to allow import of raw cotton into Pakistan from Mali, Central African Republic Guinea and Conakry. FPCCI should also take-up the matter with the Department of Plant Protection, Government of Pakistan to release consignments of imported cotton from the port timely in case of any minor mistake in the documents of phytosanitary certificate in order to avoid huge damages to the consignee.
FPCCI should take-up the matter with the Government to waive 18% GST on Raw Cotton at ginning stage, which is refundable to the cotton exporters at export stage. This will help to avoid stuck-up of working capital of exporters of raw cotton for a long period and ensure the ability of cotton exporters to make further exports and earn foreign exchange.
FPCCI should take-up the matter with the Pakistan Cotton Ginners Association (PCGA) and All Pakistan Textile Mills Association (APTMA) to give their consents to introduce a Standard Sale / Purchase Contract of Raw Cotton evolved by the Karachi Cotton Association (The KCA) in order to ensure orderly / safe marketing of raw cotton in the country.
FPCCI should take-up the matter with the Government of Sindh and the Punjab to make liable to some body, to whom “Barren” Lands of 52,000 acres and 45,267 acres respectively handed over for Corporate Agriculture Farming / executing its “Green Pakistan Initiative” to also cultivate cotton on the above referred lands. This will help to increase cotton production in the country.
Copyright Business Recorder, 2024
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