The Trading Corporation of Pakistan (TCP) has been ordered to buy one million bales of cotton to bring stability to cotton prices.
Announcing the decision, Prime Minister Yousuf Raza Gilani said the decision was taken in view of general interest of both ginners and cotton cultivators in the country, as two million bales of cotton are still lying with the ginners.
The Prime Minister also conveyed a meeting with representatives of Pakistan Cotton Ginners Association (PCGA) to discuss the finalization of support prices for both phutti (seed cotton) and ginned cotton.
PCGA Chairman Amanullah Qureshi said they have urged the Prime Minister to fix prices for phutti at PKR 2,500 a maund and for cotton at PKR 6,000 a maund.
The PCGA’s Central Executive Committee (CEC) had earlier appealed to the Prime Minister to safeguard the interest of cotton cultivators and ginners in the country, who were incurring financial losses as the textile millers were keeping the prices of cotton at low levels though they have risen in other international markets.