ISLAMABAD: Textile units holding back payment of cotton cess may need to obtain a No Objection Certificate (NOC) from the Pakistan Central Cotton Committee (PCCC) to avail of subsidies, secure import and export permits, and take advantage of government incentives or packages.

Alternatively, the amount of cess should be recovered through the Federal Board of Revenue, while the federal government could provide funds for research and development and ERE.

These proposals were discussed during the PCCC’s governing body meeting on Thursday. Minister for National Food Security and Research Rana Tanveer Hussain deliberated on critical issues surrounding the cotton cess and restructuring of the PCCC to revitalise its operations.

The minister expressed serious concerns over the past eight years’ delays in resolving the cess-related disputes, which have adversely impacted PCCC’s efficiency and its contributions to cotton research and development (R&D).

A press release of the ministry says that immediate measures were proposed to resolve the cess issue, ensure recovery of outstanding dues, and restore PCCC’s financial stability.

The minister reiterated the government’s commitment to supporting growers and strengthening PCCC’s role as a key institution for the cotton sector and thanked the governing body members for their valuable input for an amicable solution to the prevailing situation.

To address current challenges, the Ministry of National Food Security and Research, in collaboration with the Commerce Ministry, plans to host a National Cotton Conference in Multan on Feb 4, 2025. The conference will serve as a platform for stakeholders to devise sustainable strategies for the recovery and growth of the cotton industry.

The ministry has already held several meetings with the All Pakistan Textile Mills Association (Aptma) and the Pakis­tan Cotton Ginners Association (PCGA) to address the payment of cotton cess.

The ministry’s secretary recently informed the National Assembly Standing Committee that there had been little to no increase in the cotton cess over the past decade or only a minimal rise.

Published in Dawn, December 13th, 2024