November 4, 2001	Sunday	Shaba’an 17, 1422

LAHORE, Nov 3: The Trading Corporation of Pakistan and textile millers will sign first accord on Tuesday with growers for procurement of contamination-free cotton.

This was stated by Commerce Minister Abdul Razak Dawood on Saturday. “It is a big success in the government efforts to induce farmers to grow contamination free cotton in Rahim Yar Khan and Ghotki.”

He said, “the Trading Corporation of Pakistan and textile millers would go down to Rahim Yar Khan on Tuesday to sign first few contracts with the growers. The mills will pay a premium of Rs200 per maund for contamination free cotton and Rs75 per maund for cotton with contamination up to 2.5 grams per bale,” he told reporters after a meeting here at the Smeda office.

To a question, he said the TCP had been involved in the procurement of contamination-free cotton only as a facilitator and catalyst. “The corporation would withdraw from the market as soon as it becomes clear that the private sector has actively begun purchases of the contamination-free cotton.”

He said the results of the government efforts so far received were quite encouraging, adding even the farmers outside Rahim Yar Khan and Ghotki — such as Multan — had begun producing less contaminated cotton. He said Pakistan was losing five (US) cents per pound due to high contamination rate of 20 grams per bale.

Textile miller Gohar Ejaz said 70 per cent of 1.2 million bales produced in the district of Rahim Yar Khan this year was expected to be classified as contamination-free cotton.

The minister said he would visit Rahim Yar Khan on Nov 15 to see the extent of success as well as the speed of sales there.

He said the government wanted to encourage the farmers to grow contamination-free cotton because it was the first step towards producing value-added textile products.

He also announced that the TCP had decided to procure Grade II and I cotton besides Grade III. He said cotton bought by the TCP would not be sold in the local market. He also sought to clarify that the government did not plan to put any curbs on free export and import of cotton as reported in a section of the press.

APP ADDS: Earlier, presiding over the meeting on cotton situation and production the minister urged mill owners not to be rigid in following Grading standards for cotton rather keep slight margin and pay extra in order to encourage farmers to deliver contamination-free cotton to ginners.

He said the Trading Corporation Pakistan (TCP) would continue to follow the present purchasing policy for cotton Grade 1 and 2. It will not involve in purchase of cotton Grade-3. This is essential to give message to farmers to produce contamination free cotton.

The meeting decided that TCP would hold selling of cotton till March and consider participation of local buyers to compete in open bidding for sale of cotton.

It was also decided that Balochistan cotton was going to arrive in market shortly, so they should give consideration to buy Balochistan cotton.

Cotton import policy would remain same, however, State Bank of Pakistan would be contacted to give details of import of cotton by providing LCs opened by the importers, the meeting decided.

The meeting observed that this would give an idea of origin of import, specification, quality, prices modalities have to be worked out for providing foreign exchange cover the project financing and for lower rates in order to be competitive in the market.