KARACHI, Nov 7: Stakeholders in the country’s cotton economy are giving divergent views, varying cotton production figures and prices for the current season only to suit their respective segments in cotton trade.

Almost all players in the cotton economy disagree with one another, which implies that each of them are projecting production figures, cotton rates and world cotton scenario as per their interest.

The All-Pakistan Textile Mills Association (PMA) chairman, Ahsan Bashir, said in a statement that Pakistan would witness a bumper cotton crop this year and projected that the crop size would be around 15 million bales.

He described it as a phenomenal outcome of the free market policy of the government which has also ensured record cotton prices to growers over the last three years.

While appreciating the government for keeping intact the free market mechanism in the larger interest of all stakeholders, including growers, ginners and millers, Ahsan said Aptma had been in at the forefront for advocating free market mechanism to maximise resource transfer towards the farming sector.

He further said that presently local cotton prices are above world cotton prices. The industry as a matter of fact is being overcharged by Rs200 per maund for Pakistani cotton whereas world cotton can easily be imported at Rs6,000 per maund on Pakistani cotton parity basis.

He disclosed that spinners have made agreements in the world cotton market for purchase of over one million bales during the last one week. He predicted that by the close of current season next year, the country would be holding surplus cotton.

Mohammad Jawed Bilwani, chairman, Pakistan Hosiery Manufacturers and Exporters Association (PHMA), while reacting to the report that cotton growers in Multan set their phutti (seed cotton) on fire because of prevailing low price of their produce, said that value-added textile sector had always been advocating protection to growers.

He said that phutti (seed cotton) is purchased by the ginners at the cheapest price while cotton is sold at the highest price which has resulted in fleecing growers from their hard-earned money.

He accused ginners and spinners of making huge profits at the cost of cotton growers by hoarding the produce and later selling it at world prices.

Bilwani further said this was happening under the government’s nose, yet they remain a silent spectator.

He urged the government to regulate the entire cotton economy, starting from phutti to raw cotton, and also to stop unbridled export of coarse count cotton yarn in the nation’s best interest.

Former executive member of Pakistan Cotton Ginners Association (PCGA) Ihsan-ul-Haq said that reports of lower production of cotton crop in Pakistan and India have pushed raw cotton prices.

He said strong indications that China plans to purchase cotton yarn from Pakistan in a big way have positively impacted local cotton prices which have started moving higher.

He further said that during the last two days, price of cotton has jumped to Rs6,200 per maund with addition of Rs200 whereas price of seed cotton (phutti) has jumped to Rs3,000 per maund with an addition of Rs300.

Haq said that it is expected that upward trend in cotton prices would continue for the next few days.