LAHORE: The textile millers have urged the government to procure total production of 14 million cotton bales and supply it to the textile industry on the international price.
All Pakistan Textile Mills Association Chairman SM Tanveer, during a press conference, said that the government’s move to intervene in the free market mechanism is imprudent, as there is a move to procure seed cotton (phutti) equivalent to one million bales at the support price of Rs3000 per 40kg.
He said the cost of production for cotton growers was very high, as the price of urea has been increased by Rs150 per bag and diesel prices have been jacked up by 45 percent. It has put the cotton farmers into trouble.
Tanveer recalled that the Trading Corporation of Pakistan had procured 90,000 cotton seed last year and incurred a loss of one billion rupees. “An independent inquiry should be made that why the Corporation has incurred such a huge loss last year,” he added.
Furthermore, he raised the question that why the Corporation was repeating the same mistake this year when the last year procurement is yet lying with it. He lamented that the Corporation was toeing a wrong policy in a situation when the country’s exports during the outgoing fiscal have dropped by 17 percent.
He added that the cotton farmers, like the textile industry, are facing the dilemma of rising cost of production and the government should reduce their cost of inputs by providing a direct support on electricity and fertilizer.
