Pakistan should make the best use of each gram of cotton produced
in the country
By SHABBIR H. KAZMI
Nov 15 - 21, 1999
With the arrival of cotton from new crop various pressure groups have
become active. Like every year, it is being said that there would be a bumper crop of over
11 million cotton bales. Phutti (raw cotton) prices have already come down to around Rs
500 per maund and it is apprehended that if government did not intervene it would further
go down. Nawaz Sharif, in his last days, had ordered procurement of cotton by the Trading
Corporation of Pakistan (TCP) and banks were also ordered to provide funds to the TCP.
There was also pressure on the government that involvement of TCP would not yield any
substantial results and it should not be allowed to play any role in the cotton trade.
Traditionally there are two pressure groups involved in cotton trade,
these are growers and spinners. While the growers want the highest possible price, the
spinners wants the lowest possible prices of cotton to prevail throughout the year. At the
time of release of estimate of cotton crop size they have a common motive an
exaggerated output figure.
It may look strange but it serves their basic motives. Both of them
want to create an impression that there is a surplus of cotton.