ISLAMABAD, Sept 26: With Pakistan losing $350 million per year due to contaminated cotton, the government on Thursday introduced a law to follow international cotton standardization and grading system in the country.

Minister for Food and Agriculture Khair Mohammad Junejo and Commerce Minister Abdul Razak Dawood told a news conference that the President and the Federal Cabinet has approved the “Cotton Standardization Ordinance 2002”. They also announced new premia prices for various categories of contamination-free cotton to be paid to ginners and farmers.

The law would come into force immediately to control the quality of the Pakistan’s produce, which was one of the best but was being treated as B-grade and discounted by 4-5 pound sterling per bale in the international market, said Khair Mohammad Junejo.

The law, he said, was first put in place in 1994 but could not cover required stages of parliamentary approval and lapsed. The cotton standardization and grading capabilities have since been developed and five districts have been declared cotton contamination-free areas but this would now have complete legal protection.

These five districts produce around 40 per cent of country’s total 11 million bales cotton production. These districts include Rahimyar Khan and Bahawalpur in Punjab, Ghotki and Sanghar in Sindh and Nasirabad district in Balochistan.

Razak Dawood criticized Sindh government for not implementing the cotton standard act despite repeated reminders but expressed satisfaction that contamination has reduced from 19 grams to 5 grams per maund in Rahimyar Khan.

He, however, could not quantify the benefit the country has gained due to clean cotton produced in Rahimyar khan saying it would take two-three seasons to materialise.

Khair Mohammad Junejo said that while President General Pervez Musharraf immediately understood the clean cotton campaign, he had even written a letter to Sindh Governor on Thursday to implement the cotton standardisation act in his province.

Mr. Junejo said that Pakistan Cotton Standard Institute (PCSI) has been given lead role for the implementation of cotton standardisation ordinance 2002. The general direction and administration of the PCSI would vest in the board, which would exercise all powers and do all acts required under the ordinance.

The board shall comprise representative of food, commerce and finance ministries of the federal government, provincial agriculture departments, Trading Corporation of Pakistan, Pakistan Central Cotton Committee, Karachi Cotton Association, All Pakistan Textile Mills Association, Pakistan Cotton Ginners Association, Textile Commissioner’s Organisation, one grower from each province and director PCSI.

The federal secretary agriculture would be the chairman and vice chairman would come from the commerce ministry. An executive committee comprising vice chairman, three members of the board and director of PSCI would act as principal administrative body of the PCSI.

The government would contribute to the PCSI in form of grants while a levy of a standardization fee at Rs10 per bale would be charged at the ginning level. Assuming the average cotton crop size at Rs10 million bales, the PCSI on full coverage basis would earn as much as Rs100 million annual against its total budget estimate of Rs41 million.

The PCSI board would introduce standardization of cotton and recommend measures to provincial governments for producing contamination-free cotton, conduct grading of cotton and classification of lint cotton through its classers or approved private inspection companies.

The board would also pre-qualify the private inspection companies for certifying the quality of cotton and develop arbitration procedures to settle disputes relating to classification, grading and contamination amongst sellers and buyers of seed and cotton lint.

Razak Dawood said that the new law has barred movement of cotton produce in jute or other bags and would have to be transported in open trolleys.

He said that a premium price of Rs150 per maund over and above the base rate would be paid for quality-A cotton with contamination level of 1.5 grams per bale, followed by Rs75 per maund for B-quality of 2.5 grams contamination and Rs50 per maund for contamination level upto 3 grams per bale.

The ginners would have to maintain the level of moisture in cotton at 8.5 per cent in accordance with international standards.

Razak said that TCP procures higher grade clean cotton and one third share of premium price would be paid to the respective farmers.

Under the law, TCP has also laid down a criteria for selection of ginning factories for production of clean cotton. This include valid licence from the provincial agriculture department to operate the ginning factory.

The selective factories would have to ensure sufficient number of raised and cemented platforms to facilitate spreading and drying of phutti, install pre-cleaners, ensure ginning standards in good operating condition, new Gin Saws, fully automatic press, weigh-bridge for weighing seed cotton in trolleys, latest PCSO grade boxes for both phutti and lint and at least one trained selector to ensure effective supervision of quality.