A major crisis is hitting the cotton industry across the country as cotton ginners have announced suspension of cotton procurement, reported 24NewsHD TV channel on Friday.

As cotton prices fell from Rs19,000 to Rs17,000 per maund, cotton ginners have refused to buy cotton at the intervention price. They have announced to suspend cotton purchase.

Cotton Ginners Forum Chairman Ahsanul Haq said that cotton markets had crashed due to extremely limited cotton purchases by textile mills. He said following the cotton market crash, the government support price even went down below Rs8,500 per maund.

He said orders were issued by the administration of most of the districts to the cotton ginners to buy cotton at the intervention price. Cotton ginners were threatened of legal action in case of non-compliance, he added.

Haq said when cotton price dropped from Rs19,000 to Rs17,000 per maund, cotton ginners refused to buy cotton at the intervention price.

Long queues of cotton trucks could be seen outside the ginning factories and a wave of concern has spread among farmers.

The Cotton Ginners Forum chairman demanded of the government to abolish 18% sales tax on cotton seeds so that prices of cotton could be stabilized.

 

Reporter Ashraf Khan