KARACHI, Nov 2: A move to suspend the cotton buying temporarily was shot down on Friday by a grand meeting of All Pakistan Textile Mills Association (Aptma). The strategy failed to gain support as spinners having diverse interests were unable to reach a consensus.

A meeting was simultaneously called at Karachi, Lahore and Peshawar on Thursday through teleconference system by Aptma to discuss soaring raw cotton prices and host of other issues confronting the textile industry.

Despite the fact Aptma members were unanimous on issues, including high cotton prices but were unable to reach a consensus to suspend the buying of cotton all across the country.

The move was tabled by one of the senior members of Aptma and was fully backed by others finding it the only way to check rising cotton prices. However, it could not materialise as members were more concerned with their individual problems and stock position.

Sources privy to the meeting told Dawn that the idea could not make headway because members were apprehensive about the system of checking buying during suspension period by individual mills.

It was seriously noted that why the government was not allowing cultivation of BT cotton which can resolve a number of issues faced by the textile sector.

The Aptma members alleged that some multinational companies were hindering the cultivation of BT cotton because presently they were selling their pesticides worth millions of rupees to protect cotton crop. Secondly, on having higher production the country would also stop import of cotton.

Presently, phutti was being sold above Rs1,500 per 40kg against official support price of Rs1,075. As a result of this cotton prices in the open market rose to Rs3,150 per maund, from Rs2,900. Some members were of the opinion that growers were holding back their stocks in order to get even better prices.

Around 4.5 million bales from current season had already reached the market and eight million bales were yet to arrive at the ginneries. This situation had created panic among spinners who normally rushed to buy quality cotton during November and December.

In dependent observers believe that rush and panic buying on part of spinners is the main cause behind surge in cotton prices and if they delay or at least suspend their buying for some time the prices will come down.

The hot climate is inhibiting cotton balls to open up and this was the main cause of slow arrival of phutti to ginneries. But spinners on their part were in a fix because most of them did not have carryover stocks to keep their mills running.

In India there are buffer stocks for around 90 days and in China for 120 days but Pakistan whose economy largely depends on cotton and textile industry do not have any buffer stocks to keep the industry in production.

Another factor which was damaging the industry was high polyester fibre price, which has 6.5 per cent import duty.

On the world market cotton prices were also rising rapidly on higher imports from China. The Chinese government had asked its industry to complete their cotton imports by December 15 after which no imports would be allowed. As a result of this there was a surge in world cotton prices.