The Trading Corporation of Pakistan (TCP) may bring 0.186 million bales of cotton into the domestic market after May 15. Sources told Business Recorder here on Tuesday that TCP had procured 0.186 million bales from the growers. When TCP intervened to control the prices of cotton, the rate of commodity in the local market was around Rs 2700 to Rs 2850 per maund against the cost of production Rs 2900-3000 per maund.
After TCP intervention, the prices of cotton in the local market again started increasing. "TCP procured cotton at Rs 3205 per maund from growers while the price of cotton has reached Rs 3400 to Rs 3500 per maund in local market", sources said. "Now it is time for TCP to re-intervene by bringing its stock of 0.186 million bales in the local market", sources said.
Sources added, "If TCP starts selling its procured cotton in the domestic market this time, it would no doubt earn Rs 200-300 per maund profit". When this scribe contacted a senior official of TCP, he said that TCP was doing 'final evolution' of the procured cotton. "TCP will start selling cotton in the domestic market as soon as it gets directive from the Federal government".
Sources said, "The Federal government understands that high cost of production of the textile sector needs some relief. So, after May 15, TCP may start bringing its stored cotton into the market. Sources added that it was being estimated that wheat sowing area would increase in 2009-10 because cotton growers have started sowing of the commodity from March. Ministry of Textile sources told this scribe, "The government has given a free hand to the textile sector to import cotton from wherever they want. Then why are they not availing this opportunity".