Intervention not to benefit growers but cotton hoarders

 

Cotton Trade:

Govt intervention not to benefit growers but hoarders

Cash grant, power bill waiver can support cultivators

Islamabad: [Jan 03]

The Pakistan Economy Watch (PEW) on Tuesday said expected intervention of the government in the cotton market to stabilise prices will not benefit small growers but hoarders.

Planning Commission has already termed interference against the free market mechanism while Ministry of Finance has expressed its inability to provide funds to Trading Corporation for procurement.

The Prime Minister has not directed the TCP to buy cotton but asked for a detailed report after which different ministries are preparing a paper to be presented in the Economic Coordination Council on Jan 05, said Dr. Murtaza Mughal, President of the PEW.

He said that government should not fall in the trap and consider direct cash grant or waiving electricity bills, abiana etc. to save the growers from any significant economic loss.

Dr. Murtaza Mughal said that textile ministry should not rely on the statistics provided by ginners but also seek feedback from provinces of Punjab and Sindh.

He said that participation of representatives of growers and that of provinces should be ensure in the meetings.

According to the statistics provided by the Pakistan Cotton Ginners Association total production of cotton bales stands at 12598000 while 11036018 have been arrived at ginning factories, 10453017 have been pressed while 9013925 have been sold.

Ginners claim that they have 2022093 bales of unused cotton that needs to be verified through independent sources, Dr. Mughal added.

He said that only 1561982 bales are outside the market for which an intervention can be wastage of resources.

It may be mentioned that The Karachi Cotton Association, APTMA, and sections of the cotton economy have expressed reservations over intervention which has remained counterproductive in some neighbouring countries.

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