The Karachi Cotton Association has expressed its serious concern and anguish over the Pakistan Cotton Ginners Association’s statement
Karachi: The Karachi Cotton Association has expressed its serious concern and anguish over the PCGA’s statement published in a section of Press to the effect that the KCA have no right to demand for imposition of ban on Export of Raw Cotton at the cost of growers as well as ginners.
The KCA has never made any demand for imposition of ban on Export of Raw Cotton. In fact, the KCA has always advocated for free trading policy in cotton i.e. free export and import of cotton without any quantitative or tariff restrictions in order to ensure international price of cotton to the growers and provide a level playing field to all sections of the cotton economy.
The KCA understands that such a misleading report has been released by the PCGA to create misunderstanding in the Cotton Trade and gain undue advantage to safeguard their own interest.
The KCA fails to understand that why the PCGA is not prepared to accept the Cotton Exporters as a second buyer in the market. As per their own Report, it is established that the exporters of Raw Cotton, being a second buyer, have purchased and exported 0.5 million bales of cotton at international prices within a short span time of 04 months. Hence, it is not correct to say that there is only one buyer of Raw Cotton in the market i.e. Textile Mills.
It is added that about 95% of the Cotton Crop has already arrived in the ginning factories and only 5% of cotton crop is lying with the growers. The KCA fails to understand that why the PCGA, on behalf of the growers, is demanding the Government to direct the TCP to procure cotton at a Minimum Support Price at this stage.
In fact, the ginners have accumulated stocks of rain effected cotton/poor quality cotton at cheaper prices and now desire to sell the same cotton to the TCP at higher prices for their own benefit.
The KCA advices the PCGA that they should restrain in making such a misleading/self created report in future and accept the ground realties that the exporters of Raw Cotton are actively playing their role in the Cotton market as second buyer and exerting stabilization effect on the cotton prices.
The KCA reiterates its firm stand that the Government should continue allow the existing free trade policy of cotton in the interest all sections of the cotton trade and economy of the country.
For more information, contact:
Karachi Cotton Association
The Cotton Exchange I.I Chundrigar Road,
Phone: + (92)242-5007, + (92)241-2570, + (92)241-6497
Fax: + (92)241-3035, + (92)241-2580