He made the announcement on Thursday during his visit to Rahimyar Khan, a major cotton production area.
Cheema, who himself is a leading textile industrialist, flew from Islamabad to the city to visit the cotton crops and Bismillah Traders and Cotton Ginning Factory, which uses modern Turkish technology to produce quality cotton.
He told a big gathering of ginners that the government wanted the ginners and growers to produce quality cotton and the premium could be an effective tool to push the strategy forward.
During his visit to the factory, the Minister was informed that Quetta Textile Group has committed to buy the entire production of the factory by paying Rs 70 as premium on grade-II cotton. Cheema highly appreciated the gesture of the Group.
He asked other textile industrialists to follow Quetta Textile Group and pay due premium on quality cotton.
The Minister directed the growers and ginners that they should refrain from using polythene bag for picking and handling of cotton and strongly recommended use of cotton bag for the purpose.
The government is taking the job of producing contamination-free cotton for the last few years. It had announced some incentives for the farmers and ginners in the past as well to encourage them to adopt modern ways and technology for picking and ginning. The incentives also included premium on quality cotton production.
The growers and ginners accepted the challenge upfront and prepared sizeable quantity of high quality contamination-free cotton. But, the plan failed as the textile industrialists refused to pay the premium.
Haji Ibrahim and other ginner leaders appreciated Cheema's efforts for promoting contamination-free cotton and assured him that they will promote the culture of clean cotton in the country.
Talking to Business Recorder from Rahimyar Khan on phone a prominent ginner Haji Ibrahim said that the textiles minister emphasised on the importance of contamination-free cotton during his visit to Bismillah Traders and Cotton Ginning Factory and urged upon the ginners and growers to use modern technology to get quality cotton.
Haji Ibrahim said that the ginners and growers would come up with the government's expectations and produce clean cotton to get premium on their stocks.