Ministry of Textile Industry and the Pakistan Cotton Ginners Association (PCGA) are at loggerhead over the cotton production estimate for 2011-12. The Cotton Crop Assessment Committee (CCAC) recently in its first ever meeting projected cotton production in the country at 12.22 million bales for the current season 2011-12.
However, the PCGA has rejected the cotton production estimate of the CCAC describing it as an exaggeration and said that cotton production for 2011-12 would not be less than 15 million bales. PCGA has urged the government to ask the Trading Corporation of Pakistan (TCP) to purchase the surplus production of 3.4 million bales.
The spokesperson of Ministry of Textile Industry said that the initial estimate of cotton crop issued by CCAC for the current year is based on 'unbiased' data and research. He said that CCAC is the authentic and official forum for the cotton crop assessment in the country. It brings all stakeholders and experts of the country on one table to discuss and announce an estimate. The misleading figures being provided by different organisations are based on their vested interests and are attempts to manipulate the market.
He further said that the estimate of CCAC is mainly based on data provided by Crop Reporting Services of Provincial Agriculture Departments. The Crop Reporting Services conduct structured surveys at fortnightly intervals on 500 representative villages in the cotton growing areas. The crop estimates are based on different factors like germination, plant population, average number of bolls per plant, average boll weight data, correlated with pest outbreak data, pest and disease prevalence, weather data, fertiliser and pesticide availability and usage, water availability and flood damages.
He further said that all the stakeholders have been informed that the cotton crop assessment of 12.22 million bales amounting to 2.078 million tons which is a preliminary estimate is based on international standard weight of bales, ie 170kg each; while the bales being produced in our country are approximately of 150kg. If the latter weight is taken into consideration the estimate rises to 13.852 million bales.
Moreover, Ministry maintains that the estimate was based on a rational calculation as per established methodology and by mutual consultation and representation of all associations like All Pakistan Textiles Mills Association, Karachi Cotton Association, and Pakistan Cotton Ginners Association in the meeting. All the participants were informed that it was an initial estimate and the estimate would be reviewed in the 2nd meeting of CCAC on 23rd November in consultation with the relevant stake holders.
On the other hand, chairman PCGA Aman-ullah Qureshi told Business Recorder that they reject the CCAC report. CCAC initial meeting to review cotton production was inaccurate as the country was expected to produce around 15 million bales during current crop season. The CCAC estimates the crop at 12.22 million bales against the actual estimate of 15 million bales for 2011-12, Aman added.
He said that the Ministry of Textile Industry should shun releasing biased data of cotton production, otherwise 65 percent of the country's foreign exchange earning cotton sector would be hit hard. He reiterated his appeal to Prime Minister Yousuf Raza Gilani to save cotton growers and ginners from financial losses as the textile millers had created a cartel to keep the prices down though New York and other international market prices are higher than those prevalent in Pakistan. Aman said that the government should ask the TCP to play its role as third buyer to foil the cartel of spinners, weavers and other textile millers.