The Trading Corporation of Pakistan (TCP) will purchase 300,000 bales of clean cotton this season and has selected some 30 factories of South Punjab for the purpose.
A spokesman of the Pakistan Cotton Ginners Association (PCGA) told newsmen that the TCP would buy the contamination-free Grade III lint at Rs 50 above the support price of Rs 2,269 per maund. He said the lint would be selected by a three-member committee representing the TCP, the Agriculture Department and the Cotton Institute.
The TCP is fielded by the Federal government as a third buyer, along with textile mill-owners and exporters to prop up the open market prices for the benefit of farmers.
Meanwhile, according to a PCGA report, 374,000 cotton bales had arrived at the ginneries in Punjab and Sindh by September 15, which is about half of that of the previous year.
The open market rates of Phutti (seed-cotton) range from Rs 900 to Rs 950 per 40 kilogram and those of lint from Rs 2,100 to Rs 2,150 per maund.