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Watch
TCP asked to maintain
lint prices at Rs1,988: SBP to give Rs10bn credit
ISLAMABAD, Sept 14: The State Bank of Pakistan (SBP) will give
a credit line of Rs10 billion to the Trading Corporation of
Pakistan (TCP) for the cotton procurement during the current
season, informed sources told Dawn .
The federal government has also directed TCP to draw a
comprehensive cotton procurement plan to ensure that prices
did not fall beyond a specified limit.
The decision to this effect came here at a meeting presided
over by Abdul Razak Dawood, the minister for commerce and
industries to review the cotton policy. The Economic
Coordination Committee (ECC) of the cabinet in June had asked
for cotton price stabilization through state-owned TCP to
ensure fair return to cotton growers.
Minister for Food Khair Mohammad Junejo, secretaries of food
and commerce, chairman, All Pakistan Textile Mills Association
(Aptma) and representatives of ginners and growers also
attended the meeting.
The meeting directed the TCP to maintain cotton lint price at
Rs1,855 per maund or Rs1,988 per 40 kg and Rs780 per 40 kg for
phutti. This would entail TCP intervention in the cotton
market when lint and phutti prices fell below the prescribed
limit.
An official statement said: "The meeting discussed and decided
that in order to ensure fair return to the cotton growers, TCP
would increase its procurement price to Rs1,855 per maund and
Rs1,988 per 40 kg." The rate of advance payment for cotton
procurement has also been increased from 85 per cent to 90 per
cent for procurement operations till December 31, 2001, said
the brief statement.
Official sources said that a cotton pricing ordinance would be
sent to the federal cabinet in next few days for approval that
ensured premium prices to the growers for producing
contamination free cotton.
Under the proposed ordinance, Rs200 and Rs75 per maund
additional premium for producing contamination free and low
contaminated cotton qualities respectively would be provided
to get better export price.
"Pakistan is currently losing around four to six cents per
pound of cotton due to this contamination, and it's
unfortunate that a cotton-based country is unable to produce
contamination free cotton," official sources said.
Contaminated cotton has already been banned in Punjab under
the Cotton Act, and Rahimyar Khan with around 135 ginning
factories has been designated to produce standard cotton.
Punjab government, Pakistan Cotton Standard Institute (PCSI)
and Trading Corporation of Pakistan would concentrate on
Rahimyar Khan in this respect. Nawab Shah in Sindh has also
been assigned the same job.
Balochistan has been able for the first time to bring 0.1
million acre under cotton cultivation, and the government and
TCP have advised them to go for only two varieties and start
with contamination free quality and whole of their stock would
be lifted by the TCP to encourage farmers in Balochistan.
The government had decided in May this year to allow private
sector inspection companies for quality specification and
grading
September 15,2001
Courtesy Daily
Nation
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