950808

CEC reduces price

of Turkmen cotton

by Rs 235

RECORDER REPORT

KARACHI: The Government of Pakistan has decided to reduce the price of cotton imported by the Cotton Export Corporation (CEC) and offered for sale to domestic spinners on no-profit no-loss basis.

According to sources in the textile industry, it was decided by the Ministry of Commerce on Monday that the price offered to domestic textile mills for purchase of the cotton be reduced from Rs.2350 per maund to Rs.2115 per maund.

It was also decided that those mills which had already deposited the money for their allocated 1500 bales at the rate of Rs.2350 per maund could purchase additional 167 bales against excess amount after the reduction of price.

The Ministry of Commerce had earlier this year agreed to sell the cotton imported by the CEC from Turkmenistan on no-profit no-loss basis to domestic mills in order to provide them some relief from the shortage of cotton resulting from the three-year-long crop crisis.

A total of 60,000 bales (240 kgs, each) were offered for sale by the CEC at Rs.2350 per maund, with allocation of 1500 bales per mill on 'first come first serve basis'. Applications for more than 27,000 bales have so far been received by the CEC and it is expected that after reduction of price more textile mills will purchase superior quality cotton, sources added.

The textile mills had complained to the government that the price announced by the CEC for sale of imported cotton was exorbitant worked out for sale.