LAHORE: The Pakistan Cotton Ginners Association (PCGA) has faltered on its resolve to continue strike for an indefinite period only a week after its launch reportedly due to violations of the decision by a few ginning units in Punjab.

Apparently the PCGA withdrew its strike call, given at an urgent general body meeting in Sukkur on June 23, to protest imposition of taxes on the textile sector in the recent budget and ‘exorbitant increase’ in the power tariff for the ginning units, under pressure of the cotton growers.

However, insiders say that half a dozen ginning units in Punjab did not abide by the strike decision and continued purchasing cotton from Sindh, notwithstanding all the pleas made by the PCGA to them.

This created a concern and fears of business losses among other ginners, thus making the association take back its call at least for one month.

PCGA Punjab members violate strike by cotton purchase from Sindh

“The strike call decision has been revisited in view of the appeals by Punjab-based Kissan Ittehad and Sindh Abadgar Board so that cotton growers may be protected from damage to their produce in the rainy season,” says a PCGA official, requesting not to be named.

He adds that the association, suspending the strike call for one month, has decided to convene another general body meeting after two weeks to frame a fresh strategy about the government’s tax and electricity tariff policies.

Meanwhile, Punjab Agriculture Minister Ashiq Kirmani has written to the federal government and pleaded to review its tax policy for the ginning sector.

The letter, a copy of which is available with Dawn, says levy of more taxes in the new budget would not only directly affect the Punjab farmers but also encourage an increase in the undocumented cotton business, thus causing revenue loss to the federal government.

It claims that a trade of at least two million bales was undocumented last season and fears that further taxation will add to the trend and prove counterproductive to the government’s efforts of generating more revenue through the new tax measures.

Cotton Ginners Forum chairman Ihsanul Haq laments that despite restoration of trade in cotton markets, the rates of lint are on the decline because the textile industry is showing lukewarm attitude towards the local produce.

He says cotton rates have come down by over Rs1,500 to Rs18,000 per maund in Sindh and Rs18,500 per maund in Punjab. Raw cotton (phutti) prices are also being quoted in the range of Rs8,000 per 40kg in Sindh and Rs8,500 per 40kg in Punjab, he adds.

Published in Dawn, July 1st, 2024