RAHIMYAR KHAN - According to the fortnight report issued by PCGA, the total domestic arrivals of seed cotton (phutti) up to March 15, 2013 were 12,845,070 bales that are 1,703,775 bales (11.71pc) lesser than previous year.
The report further details that during the period 9,445,703 bales equivalent seed cotton received in ginning factories of Punjab that was 2,434,274 bales (20.50pc) lesser than previous year whereas 3,399,367 bales equivalent seed cotton was received in ginning factories of Sindh that are 730,499 bales (27.33pc) higher than previous year for the corresponding period.
The PCGA report says that up to 15th March 2013 total cotton exports stand at 328,931 bales as compared to 1.0 million bales during corresponding period of last year.
The textile mills so far have purchased 11,618,033 bales from the ginning factories and 898,106 bales are still lying with the ginning factories. Ihsan-ul-Haq, Ex-Executive Member of PCGA told that total domestic cotton production is assessed as 13 million bales whereas we need 16 million bales to meet industrial and other requirements.
He further told that due to rains in early cotton season of 2012 the germination capacity has fallen to 55-60pc whereas standards require 75pc germination for certified seed resulting in shortage of certified seed in Sindh and Punjab; hence Punjab Seed Corporation as well as Seed Association of Pakistan has demanded that Federal Government may consider lowering the germination standards to 50pc so as farmers can get certified seed of cotton for current planting season.
Ihsan-ul-Haq further told that FBR has decided to defer Sales Tax on sale of cotton lint and present policy of zero sale tax will prevail; PCGA has welcomed the decision.