Increasing prices of raw cotton together with low remuneration of finished products is forcing ginners out of job. A spokesperson from Pakistan Cotton Ginners Association (PCGA) stated on November 26 that low prices of cotton goods in the local markets have incurred serious losses to ginners causing 1,200 factories of Punjab and Sindh to stop operations in the country.
In a meeting held on November 25, PCGA decided not only to stagnate all its operations in the ginning factories but also to directly purchase raw cotton (Phutti) from the farmers until the issue of imported cotton settles down. A rally was also organized by the association to attract the attention of the caretaker Government.
APTMA has also taken measures to bring down the prices of ginned cotton. While ginners had earlier purchased cotton at Rs1,700 per maund, they were now astonished to find the same reach Rs3,250 per maund.
Phutti is being currently sold at Rs1,600 to Rs1700 per maund, while cotton prices are still standing at Rs3,100 per maund. Even last year, ginners had lost millions of rupees because of high interest rate on loans and low prices of finished products. This naturally led to a rise in the cost of production as well.
PCGA officials believe that, had the Government taken adequate measures to implement the Cotton Control Act, the situations would not have worsened to this extent. Impure phutti was making it difficult for the country to produce good quality cotton and as a result, raw cotton was neither being sold at the local markets nor did it qualify for exports.
The association also expressed concerns over persisting low prices of cotton products in the domestic market in spite of the paucity of one million cotton bales. Further, it also expressed disappointments with the Government over allowing imports from India through the Wahga border without coordinating with the stakeholders.
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