PCGA warns against duty-free cotton import from India

The Pakistan Cotton Ginners Association (PCGA) demanded the government to impose complete ban on cotton imports from India as PCGA leaders strongly feel that imports of cotton lint from India via Wahag Border is detrimental to the interests of the cotton growers, it will ruin cotton growing and growers in Pakistan hence should be immediately stopped.

PCGA Chairman Haji Muhammad Akram, former chairman Shehzad Ali Khan, Vice Chairman Mian Javed Tariq and former vice chairmen Suhail Mehmood Haral, Sheikh Muhammad Aasim Saeed in a joint news conference on Monday said that 1.857 million bales of cotton are lying unsold at ginneries.
But on the other hand, the textile millers are reluctant to purchase this stock, they regretted, adding that there is no justification for lifting an ‘undeclared’ ban on imports of ginned cotton from India or any other country at the cost of local growers.

They stressed the need for continuation of ban on the imports from India on hold through Wagah and Karachi port. They strongly opposed any relaxation in cotton import. “Farmers have also expressed concern over lifting of ban on the import of cotton from India by the government.

They expressed concern that if the imports of cotton lint continued, it would affect the cotton production in the country during next season, adding that last year cotton production declined by 30 percent, so if appropriate measures are not taken, the position would deteriorate and affect the production.

The ginneries have sufficient stock of cotton lint available so there was no justification to import the commodity from India. The ginners said that the government did not fix the support price for cotton, leaving them at the mercy of textile millers, who would procure domestic cotton at their desired rates.

They added that they were expecting a bumper crop this year and import from India would destroy the local cotton growers. The PCGA leaders expressed concern on the import of cotton from India at this stage when the country has unsold stock of 2 million bales and more than 0.7 million bales are expected during next month.

Further, the arrival of seed cotton (phutti) at ginning factories has witnessed 3.62 percent increase between November 15 and December 1, 2017 compared to the corresponding period last year, disclosed a fortnightly report released by the Pakistan Cotton Ginners Association (PCGA) here on Monday.

The report further revealed that the seed cotton equivalent to over 10,132,074 bales reached ginneries across Pakistan as of December Ist, 2017 compared to the same period last year when ginneries received 9,778,451 bales. The report said that ginneries in Punjab recorded arrival of 6,107,802 bales against the last year arrival of 6,158,870 bales showing a decrease of merely 0.83 percent. Sindh ginneries recorded arrival of 4,024,272 bales while last year Sindh received 3,619,581 bales 11.18% more. Ginneries in Sindh recorded an increase of 11.18 % as compared to corresponding period last year.

Textile mills have bought 8,062,258 bales while exporters bought 211,989 bales. The total bales sold out so far were calculated at 8,274,247 bales. While 1,857,827 bales are lying unsold .Multan received 245,745 bales 12.50 % decrease than last year, Lodhran 1,30,204 bales 24.93 % decrease, Khanewal 621,909 bales an increase of 12.65 %, Muzaffargarh 290,926 bales a decrease of 3.88 %, Dera Ghazi Khan 365,799 an increase of 14.33 %, Rajanpur 4,09,700 bales, 24.53 % increase, Layyah 258,538 bales 2.06.% increase, Vehari 522,103 bales 47.12 % increase, Sahiwal 229,917 bales 16.16 % more than last year, Pakpattan 36,978 bales 7.92% decrease, Okara 1,5750 bales- 16.25 % short, Toba Tek Singh 148,794 bales, 0.65 % increase , Faisalabad 34,149 bales 0.53 % less than last year, Jhang 20,400 showing a decrease of 31.46 %, Mianwali 165,615 a decrease of 30 % , Bhakkar 74,755 (24.95 % more) Sargodha 7,200 (21.74 % decrease), Rahim Yar Khan 901,064 bales (11.08 % decrease), Bahawalpur 879,107 an increase of 0.89 %,and Bahawalnagar 749,149 a decrease of 19.75 %.

In Sindh province: Hyderabad 2,46,496 bales 10.24 % more than last year, Mirpur Khas (Thar) 2,19,294 bales 18.09 % less, Sangarh ,1,361,546 bales 12.48 % increase, Nawabshah 342,934 bales (9.26 % increase), Naushero Feroze 359,236 bales (11.37 % increase), Khairpur 323,538 (18.33 % increase) Ghotki 321,260 (15.84 % increase),Sukkur 5,40,709 (12.43 % increase), Dadu 5,0627-(31.50 % increase, Jamshoro 1,28,679 bales (16.73 % more), Badin 17,335 bales 35.86 % less) and Baluchistan 112,618 bales (an increase of 52.45%). Total 1,857,827 bales are lying in unsold stock.

There are in total 960 ginning factories operational in the country, of them 666 in Punjab and 294 in Sindh.