KARACHI, Oct 19: Textile mills have criticized the Trading Corporation of Pakistan for offering 50,000 bales of raw cotton to foreign buyers at a time when there was a dire need of cotton to manufacture tents, cloths, blankets and other essential items for the earthquake victims.
In a statement issued here on Wednesday, All Pakistan Textile Mills Association (Aptma) acting-chairman Mushtaq Ahmed Vohra said that due to a shortage of raw cotton and a delay in arrivals of the next crop, some weaker mills had either partially closed down or reduced their working shifts.
Mr Vohra pointed out that it was surprising the TCP seemed bent on selling its stocks to foreign buyers even though the current cotton crop was not only late but it would also be less than the last year’s crop of 14 million bales.
The Aptma chief said that the TCP decision to sell 50,000 bales to foreign buyers would not only deprive local mills of much needed raw material but would also adversely affect the production of tents, cloths and blankets.
Due to a wide gap between demand and supply because of short crop, prices of lint shoot up to Rs2,400-2,500 per maund. The word market prices are presently ruling between 54 and 55 cents per lb. Consequently, imported cotton will cost more than Rs2,600, as against the export of local cotton being offered at around 44 cents (Rs2,200) per lb.
“There is no justification for selling raw cotton to Pakistani competitors at a loss,” he added.
Mr Vohra suggested that the TCP should review its decision taken in May and June of selling cotton stocks because under the changed scenario resulting from the earthquake new strategy should have been evolved and the stocks be disposed of in the local market so that mills could meet their immediate requirements and produce such items that were in short supply.
“The TCP is holding about 400,000 bales of raw cotton and arrivals of new crop are slow owing to bad weather, and if these stocks are sold to the local industry they could produce tents, tarpaulins and blankets for the earthquake victims,” he noted.
The Aptma chief said that there was no justification for exporting cotton at a lower price and then importing it at a higher rate to meet the industry demand which had risen to 18 million bales. “This is against the government policy of ensuring early availability of such goods badly needed by the quake-affected areas,” he added.
