20000227

KCA demands part

in preparing

cotton policy

RECORDER REPORT

KARACHI: The Karachi Cotton Association (KCA) has expressed its concern over the government's intended intervention in cotton trade and has demanded its participation in decision-making with regard to cotton policy.

The board of directors of the KCA, which held its meeting on February 24, discussed the recent statement of the Chief Executive General Pervez Musharraf in respect of new cotton policy. The Chief Executive, during his visit to Multan, had stated that Trading Corporation of Pakistan would procure the entire cotton crop for the year 2000-01 from the growers so that the farmers get a fair return for their produce.

Maqbool Sadiq, Chairman, KCA, in a statement on Saturday said that the KCA has always stood for a free cotton policy in respect of both exports and imports and domestic marketing, and firmly believes that free marketing mechanism is the best instrument for efficient marketing of cotton, both domestically and abroad, and to ensure that all sector of the cotton economy obtain a fair price in relation to international situation.

The free market mechanism has worked very effectively since the deregulation of export trade and is an automatic mechanism to regulate the exports as well as the domestic prices, he said. Any government intervention would lead to disruption in the market in which one sector or the other might benefit at the cost of other sectors. However, if desired, the government may monitor cotton prices to ensure that there is no gross disruption, he said.

He submitted that the KCA should be given an opportunity to participate in the decision-making in respect of the new cotton policy so that "our views are presented" and considered before the policy is finally formulated.