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  • Feb 1st, 2005
  • Comments Off on Government spends Rs 28 billion to compensate TCP losses: minister
Federal Minister for Textile, Mushtaq Ali Cheema Monday said that the government had spent Rs 28 billion to compensate the losses suffered by Trading Corporation of Pakistan (TCP) on account of sale of cotton at low prices, which it procured on high prices. While addressing the 102nd Extra Ordinary Meeting of Farmer Associates Pakistan (FAP), Cheema said that the government had intention to suffer this financial burden just to provide proper price of cotton to cotton growers, but unfortunately, growers could not get this subsidy, and ginners as well as spinners enjoyed this facility.

He further said that TCP was allowed to procure cotton not only to stabilise cotton price but also to ensure provision of proper price of cotton to cotton growers.

He was of the view that farming community must put forward concrete and workable proposals so as the government can provide direct benefits to the cotton growers.

He said it was not possible for TCP to purchase whole cotton crop, however it played very important role in cotton procurement. He said that the government has also paid premium to the sellers of good quality cotton this year.

He said that decline in cotton price was international phenomenon and India also exported cotton this year.

He was of the view that WTO scenario was opening a lot of opportunities for Pakistani growers, who were now prepared to live without subsidy. He said that a number of countries in the world were using duties and tariff as a tool, to safeguard interests of their exporters. 'With decline in ratio of subsidy being given in different countries, the cotton prices will shoot up in international market, which will benefit the Pakistani cotton growers', he said. He assured that he would take necessary steps for the betterment of cotton growers as well as other stakeholders. He said that unjustified increase in cotton prices also adversely affect the other stakeholders in textile sector.

He refused to accept the demand of FAP members regarding imposing GST on the import of high-count cotton. 'If there is no GST on domestic cotton, it must not be imposed on imported cotton, which is an important raw materiel of textile sector', he said. However, he revealed that the government is going to remove GST on the import of man made fibre.

He said that Pakistan is making all out efforts for removing anti-dumping duties imposed by various countries on several Pakistani exportable items and in this regard services of international experts have been hired.

He was of the view that water problem was basically an issue being faced by growers, hence they must raise voice for the construction of new dams.

He said that value addition in textile sector of Pakistan is just 30%, and this level can be enhanced to a level of 70 percent.

Criticising the ginning sector of Pakistan, he said that despite producing world class quality cotton, ginners used to spoil the quality of cotton. 'In 100-pound cotton only 83-pound cotton is useable', he said.

He was of the view that contamination in cotton is a big issue, which is adversely affecting country's exports, hence this issue must be addressed with realistic manner.

He stressed the need for conducting research for bringing improvement in cottonseed quality. He also assured to take up the matter of imposing GST on cottonseed with relevant quarters.

Addressing the meeting, chairman FAP Shah Mehmood Qureshi said that Federal Textile Ministry must form a committee comprising agriculture scientists and representatives of growers to chalk out strategy for improving cottonseed quality.

Later, Qureshi, briefing the newsmen, said that meeting demanded of the government to resolve problems being faced by Balochistan growers. He said that FAP has decided to invite the representative of members of Joint Action Committee Balochistan in its forthcoming meeting. He was of the view that outstanding loans of 6 billion of rupees owed by growers of Balochistan should be waived off.

Appreciating the establishment of Punjab Agriculture Marketing Company he said that representatives of growers should also be included in the Board of Directors of this company. He said that Pakistan has potential to export dates, oranges and mangoes, but lack of infrastructure is main hurdle in this regard. He demanded of the government to take steps for checking black marketing of fertiliser in the country.

Earlier, Chief Executive FAP Afaq Tiwana briefed the FAP members regarding performance of Pakistan Horticulture Development and Export Board (PHDEB).

Copyright Business Recorder, 2005


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