Pakistan Cotton Ginners Association (PCGA), Chairman Amanullah Qureshi, said that government should safeguard the interest of 70 percent farmers instead of protecting the interest of handful individuals by asking Trading Corporation of Pakistan (TCP) to lift cotton as second player, otherwise they would be diverted to other crops from cotton if they incurred losses this year.
He warned that government would have to spend billions of dollars on the import of cotton from different countries if the farmers changed their destination. Criticising the APTMA's Yasin Sadiq's statement that the government is trying to feed handful of legislature by asking Trading Corporation of Pakistan (TCP) to lift cotton as second player.
Amanullah Qureshi said that farmers associations should come forward for the security and safety of the growers because influential people were trying to fleece them. He said that APTMA should wage struggle to reduce the power tariff, taxes and levies to lessen their cost of production and to compete in the international market, instead of cutting the throat of the farmers by keeping the price at the lowest ebb.
The government should direct the TCP to start buying cotton from growers at the rates prescribed by the government, endorsing the stance of members National Assembly Standing Committee, he said. The committee recommended the government should also take up the issue of cotton purchase by the TCP in its cabinet meeting on December 14.
The textile exports though increased in value terms during last four months of current fiscal, yet all textile exports declined in quantity terms in November. Amanullah Qureshi said that textile millers are still facing short supply of energy, which was one of the prime reasons behind drop in exports, as the textile industry has been denied gas supply for 120 days during 2011 against much lesser days during previous year but it is not true to say that exports were declined due to increase in cost of production. He admitted that the exports of cotton yarn, cotton cloth, knitwear, bed wear, towel and readymade garments have registered decline by 26, 32, 26, 28, 12 and 14 percent respectively in October 2011.
The cotton prices would increase and impose ban on the import of cotton from India through Wahga border besides allowing TCP to procure the cotton to stabilise the cotton prices in the market .He said that the government should provide more than Rs 3.5 billion to TCP for the purchase and to provide some relief to farmers who were deprived of billions of rupees due to falling the prices, he asserted. The ginning sector faced immense liquidity as two million bales were lying in their ginneries and these were turned into warehouses and godowns.