More stakeholders join striking cotton ginners
DAWN
June 29, 2024
LAHORE: Showing solidarity with the striking cotton ginners, the Karachi Cotton Association (KCA), oilseed mills and arhtis (commission agents) at major markets in Punjab and Sindh have announced halting trading in cotton crop.
The KCA, All Pakistan Oil Mills Association and governing bodies of various mandis (markets) in Punjab and Sindh on Thursday told their members to immediately stop trading in cotton until the government withdrew the tax on the ginning and textile sector.
In Sanghar, arhtis and traders staged a rally to protest the new taxes and some commission agents even threatened to stop trading in other crops as well if the tax was not withdrawn at the earliest.
The reports indicate an emerging crisis in the cotton sector to the disadvantage of growers. The crop is piling up with farmers since ginners have already halted purchases of lint. Under the circumstances, the crop is likely to be damaged as farmers lack arrangements to store it. Rains, expected within the next few days, will ruin the crop if it is not taken care of soon.
It is feared that the stored cotton will deteriorate due to rains and the industry will not get quality lint leading to a decline in the textile exports.
The ginning sector is already paying 72 per cent GST, while a 10pc additional tax has been imposed on the oil cake. Fixed electricity charges for the ginning units have been increased from Rs500 to Rs1000 per kilowatt hour.
Published in Dawn, June 29th, 2024
The KCA, All Pakistan Oil Mills Association and governing bodies of various mandis (markets) in Punjab and Sindh on Thursday told their members to immediately stop trading in cotton until the government withdrew the tax on the ginning and textile sector.
In Sanghar, arhtis and traders staged a rally to protest the new taxes and some commission agents even threatened to stop trading in other crops as well if the tax was not withdrawn at the earliest.
The reports indicate an emerging crisis in the cotton sector to the disadvantage of growers. The crop is piling up with farmers since ginners have already halted purchases of lint. Under the circumstances, the crop is likely to be damaged as farmers lack arrangements to store it. Rains, expected within the next few days, will ruin the crop if it is not taken care of soon.
It is feared that the stored cotton will deteriorate due to rains and the industry will not get quality lint leading to a decline in the textile exports.
The ginning sector is already paying 72 per cent GST, while a 10pc additional tax has been imposed on the oil cake. Fixed electricity charges for the ginning units have been increased from Rs500 to Rs1000 per kilowatt hour.
Published in Dawn, June 29th, 2024
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