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Cotton update
Need for a comprehensive cotton policy

  1. Seven - point strategy for economic revival
  2. Cotton: A comprehensive policy needed
  3. Latest cotton prices
  4. Exports of non-traditional items
  5. Soap manufacturers problem
  6. Self reliance

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.