Pakistan Cotton Ginners Association (PCGA) has initiated efforts to convince the government for immediate intervention to the free-market mechanism by directing TCP to lift one million bales, said sources. According to well placed sources, a delegation of PCGA held meeting with Prime Minister Yousuf Raza Gilani on Monday.
They suggested the PM to instruct the TCP for lifting of one million bales to support cotton farmers. The textile industry circles have criticised the move terming it a negation to the government policy of no more intervention in the free-market mechanism. They said President Asif Ali Zardari has already stated categorically that the government would not intervene into this mechanism at any cost. He has extended this assurance after strong protest of textile industry against quota system imposed by the former Minister for Textile Rana Farooq Saeed. He did so to ensure availability of cotton yarn within the country for ancillary industry when cotton prices were crossing the limits internationally.
Also said, the industry circles, Indian government also intervened in the free-market mechanism and Indian traders backed out from cotton export deals, particularly with Pakistan. However, a sudden fall in cotton prices left the Indian textile industry with glut of cotton, paying heavy cost for irrational policy from the policy makers.
The industry sources said 90 percent of the cotton crop, ie, 11 million bales out of government estimated 12.5 million bales have already been sold by the farmers. Further, cotton is free for export and only 10 percent crop is lying with the farmers. Any decision to buy cotton from ginners through TCP will cause Rs 15 billion loss to the government, they added.