TCP To Purchase one Million Cotton Bales

Trading Corporation of Pakistan (TCP) has decided to purchase one million bales of cotton nationwide following a decline in cotton prices in the open market and falling below the intervention threshold.

Bids for appointments have been solicited from cotton procurement agents, the Cotton Procurement Firm, and labor contractors.

The surge in cotton prices within the open market has brought about a sense of optimism among growers.Is DAP fertilizer pricing in Pakistan putting farmers’ livelihoods at risk?

Ihsan ul Haq, Chairman of the Cotton Ginners Forum, disclosed that during the current year, the federal government, in response to Prime Minister Mian Shahbaz Sharif’s directives, initially set the intervention price for cotton at Rs. 8,500 per 40 kilograms.

The federal government had stipulated that should cotton prices dip below this intervention level in the open market, the federal government, through the TCP, would commence the purchase of one million bales of cotton from cotton ginners to stabilize prices.

He told that due to pressure from the International Monetary Fund (IMF), Textile Mills were compelled to revert to subsidized rates for electricity and gas.

Coupled with record hikes in production costs within the market, an unusual decline was observed in the purchasing behavior of cotton by Textile Mills.

Consequently, cotton prices slid from Rs. 9,500 to under Rs.7,500  to 8,000 per 40 kilograms.

In response to these developments, cotton growers staged protests and appealed to the TCP for intervention.

In light of the cotton growers’ demonstrations, the TCP, three days ago, invited bids for appointments to the Cotton Procurement Agents, the Cotton Procurement Firm, and labor contractors for the procurement of cotton.

Appointments for the Cotton Procurement Agents have been finalized to be appointed in Rahim Yar Khan, Multan, Bahawalpur, Dera Ghazi Khan, Vehari, Sahiwal, Sanghar, Sukkur, Nawabshah, and Mirpur Khas districts.

Additionally, an extra procurement firm will also be appointed, which will facilitate the procurement of cotton along with the transportation of cotton bales from ginning factories to warehouses.

It is anticipated that with the commencement of cotton procurement by the TCP, a notable upward trend in cotton prices will manifest.