ISLAMABAD: The Trading Corporation of Pakistan has been barred from offering its cotton stock to the local textile industry at least in February when the growers are yet to dispose of their fresh crop.
Sources said the decision to this effect was taken at a meeting here early this week with Prime Minister Shaukat Aziz in the chair and attended by Commerce Minister Humayun Akhtar, Textile Minister Mushtaq Cheema, Industries and Production Minister Jahangir Tareen, Food Minister Sikandar Khan Bosan and TCP Chairman Arshad Ansari.
The textile ministry had submitted a proposal to allow the local textile industry participate in TCP tenders for cotton procurement, saying due to the decision the industry would be able to take up more export orders.
TCP has about 2,80,000 cotton bales in its godown from the previous season stock. On the direction of the government, it had procured 1.6 million bales in 2003-04 from the open market to help the growers and ginners get good prices of their produce. This policy worked to the expectations of the government and subsequently despite downward trend internationally the local market remained stable.
The sources added that the ministry of food and agriculture contested the textile ministry's point of view in the meeting, saying that participation of the local textile industry in TCP tenders at this point in time when the phutti arrival at the ginners is still continuing would hurt the growers. The minfal further argued that the move will destabilise cotton market and bring lint rates down considerably.
Pakistan Cotton Ginners Association (PCGA) has been persistently demanding of the government that it should keep the local textile industry away from the TCP stocks, and reiterated the demand on Wednesday.
Former PCGA chairman Ibrahim told Business Recorder that the ginners also want textile millers away from the TCP tenders. The ginners had held a meeting with Federal Food Minister some time back in Rahimyar Khan and strongly demanded that his ministry should resist Aptma's demand of allowing it to participate in TCP cotton tenders. Ibrahim added that the association strongly felt that offering of TCP stocks to the local industry will bring down lint rates and hurt badly the growers and ginners.
