ISLAMABAD, April 7: The commerce ministry has yet to develop a strategy for the disposal of cotton purchased by the Trading Corporation of Pakistan in the year 2004-05. Informed sources told Dawn on Thursday that a meeting in this regard was already held last week in the ministry, which was attended by the representatives of textile commissioner, Aptma, KCA, PCGA and growers. The meeting was presided over by the commerce minister.
The TCP had purchased about 1.6 million bales of cotton this year from the ginners to maintain stability in the prices of the commodity in the domestic market.
The sources said the ministry along with the stakeholders had yet to finalize the minimum bidding price for the purchase of cotton lying with the TCP. This lukewarm response of the ministry may result in a monetary loss to the TCP as the new crop was expected to arrive in the market in late July or early August which may lead to decrease in the prices of old cotton.
The sources said that the best timing for the disposal of the stock was February that could have fetched higher price for the commodity. “In case the TCP fails to dispose of the stock before the arrival of new crop, it will be difficult for it to intervene in the market for maintaining stability in the prices in future.”
The sources suggested that the ministry should finalize the bidding price at the earliest and open a tender for local and international buyers.
