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Grading at ginneries to be made mandatory in new cotton policy

RECORDER REPORT

ISLAMABAD: In the upcoming cotton policy the government is making mandatory the issuance of certificates by the ginners showing quality, classification of ginned raw cotton, sources told Business Recorder.

This compulsory certification of cotton would be enforced from July 1, 2000. Informed sources said that previously it was not mandatory for the ginners to certify about the quality of their ginned cotton but to enforce quality control, it was considered necessary.

The cotton policy is being made by the Agriculture Prices Commission after consulting all the stake-holders including growers, ginners and APTMA. This policy would be presented to cabinet for approval by March 2, before announcement by mid-March.

Chief Executive has already disclosed an important issue of coming cotton policy by announcing that from next year government would procure all cotton directly from growers. This, sources attributed as the first step towards the formulation of a commodity prices stabilisation board. The profit gained by the selling of procured cotton would be shifted for the establishment of a revolving fund.

This year cotton production is estimated at 10.7 million bales while it was recorded at 8.5 million bales corresponding year. Experts of the crop have assessed the losses of growers due to crash in cotton prices at nearly Rs 25 billion which resulted due to the allowing duty free import of 1.8 million bales at a time when a bumper crop was being anticipated.

Experts said that the spinners have benefited immensely from this shift of such a huge amount of money as no decrease in the prices of yarn have been recorded so far. The benefit of cheap cotton has not been shifted to the consumers.

This year prices of cotton fell to Rs 400 per maund from the corresponding year's Rs 850 per maund, while APCOM had suggested Rs 750 per maund as support price of cotton.