Ginners have suspended purchase of cotton from the farmers for an indefinite period starting from October 25, till their demands are accepted decided to stop procuring raw cotton till the government announces a support price for cotton and its purchase through Trading Corporation of Pakistan (TCP).
The Pakistan Cotton Ginners Association (PCGA) announced this in emergency press conference. Addressing the conference, Malik Talat Suhail, Suhail Mehmood Haral, Shehzad Ali Khan and Major Akhtar Abbas (Retd) said that present regime was incapable to govern the system properly.
The said fixing of support price of wheat at the time of its sowing and neglecting cotton, which is in the market shows incompetence of the rulers who are unable perform good governance. Further, the PCGA members said that this step had badly hit the national economy. Farmers are running after the seed companies and dealers for well-germinated and good quality seed on reasonable rates as its price had gone high sky.
On the other hand, cotton rates had taken a down turn to the lowest level. He said that 1.5 million bales of cotton are lying unsold in the ginneries stock. 'Ginners had stopped the purchasing 'Phutti' from the farmers to lessen their stock,' he said adding that billions of rupees had been stuck due to non-disposal of cotton stock.
They appealed to the President, Asif Ali Zardari and Prime Minister, Syed Yousaf Raza Gilani to intervene into the situation to save the farmers, ginners and asked the TCP to make immediately arrangement for the purchase of their unsold stock otherwise, cotton economy would sink. Moreover, banks and other financial institutions had reduced the debt limits of ginners since the spot rates had fallen.
The PCGA also protested against the increase of mark-up rate by the banks and four to five percent spread. The PCGA members also said that cotton rates in international market are 60 to 65 cent per LB but local textile millers are purchasing at 40 to 45 cent per LB.
They made it clear that ginners cannot afford to sell their cotton at Rs 2, 800 to 2, 900 per maund after purchasing the 'Phutti' at Rs 1600 to 1800 per maund. The ginners further threatened to give a strike call for indefinite period, if Government does not redress their grievances. The association has convened its next meeting of central executive committee on October 30th.