Business

Criticism: APTMA objects to lint purchase by TCP

Its an ‘imprudent’ approach to support the farmers, says Aptma Chairman Tariq Saud

Our Correspondent July 12, 2016 Less than a minute read

“It appears that the textile ministry is clueless about the dismal state of the industry where cotton consumption has already been reduced to 13 million from 16 million bales, 35% of the capacity has totally collapsed and another 30% is incurring loss due to the high cost of doing business,” added Saud. PHOTO: REUTERS

KARACHI: All Pakistan Textile Mills Association (Aptma) Chairman Tariq Saud opposed the government’s consideration to allow the Trading Corporation of Pakistan (TCP) to purchase lint from ginners, saying that it is an ‘imprudent’ approach to support the farmers.

In a statement released on Tuesday, he criticised the Ministry of Textile Industry for suggesting an indicative price for cotton on the pattern of wheat and intervene through the TCP by directly buying lint from ginners.

“It appears that the textile ministry is clueless about the dismal state of the industry where cotton consumption has already been reduced to 13 million from 16 million bales, 35% of the capacity has totally collapsed and another 30% is incurring loss due to the high cost of doing business,” added Saud.

He said that the prudent way will be to support cotton farmers through direct subsidy as announced by the PM last year. Any other attempt would be tantamount to wastage of public funds especially when the TCP also lacks infrastructural facility to hold the cotton lint.

Published in The Express Tribune, July 13^th, 2016.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.