The textile is the most important sector in Pakistan which contributes biggest revenue in the government treasury. But the downward trend of global prices of cotton phutti has created a sever problem in the country. This has aggravated the situation when the conflict between government and ginners has rose about the buying of cotton at the rate of Rs.8,500 per 40 kg.
The cotton ginners have decided to opt for closing of plants. They are asking the government to make a strategy to purchase cotton bales and oil at the government-set price, withdraw unjustified taxes on bales and resolve electricity problem.
The Pakistan Cotton Ginners Association (PCGA) has shown the concern about the conflict between the government and the ginners.
It said that it will have negative effect on farmers of cotton and cotton crop. PCGA has urged the government to resolve the issue on urgent basis so as to save the interests of the cotton growers. At the time when international market is declining, it has become difficult for local farmers to obtain fair price.
The governments order to fix the rate at Rs.8,500 for cotton phtti has worsened the problem. Market stakeholders say that the government should bear the difference if the current market rate is lower so as to encourage ginners to continue their activities without incurring losses.
But the reports show, government has not come ahead with any response rather the factories are being sealed.
The farmers of cotton have faced