PCGA condemns proposed hike in cotton fee (Pakistan)

Flaying the proposed hike in cotton fee and amendment in Cotton Control Act, Pakistan Cotton Ginners Association (PCGA) has suggested that any final decision in this regard should be taken only after considering the interests of the farmers and ginners.

 

The government proposes to hike cotton fee from the existing 10 paisa per kg to Pk Rs. 1 per kg, and also to revise the fee structure under Cotton Control Rules 1966, to be made effective from September 1, 2012, PCGA Chairman Amanullah Qureshi said.

 

The fee for factory operating with four saw gin machines was being raised from the existing Pk Rs. 4,000 to Rs. 6,000 and those with five saw gin machines from Rs. 5,000 to Rs. 7,500, Mr. Qureshi said.

 

Likewise, the fee for cotton pressing factory was being hiked from the present Rs. 1,000 to Rs. 1,500, for seed oil factory from Rs. 250 to Rs. 375, duplicate copy of licence from Rs. 500 to Rs. 750, and that for establishment of new cotton ginning and pressing factory from Rs. 5000 to Rs. 7500, he said.

 

Similarly, charges for license for modification and expansion of factory were being raised from Rs. 2000 at present to Rs. 3000, for factory monogram from Rs. 200 to Rs. 300, and the fee for ginned cotton bale of 40 kg was being increased from Rs. 2 to Rs. 3, he added,

 

He said that presently the ginners each year collect about Pk Rs. 630 million from the growers and pay the same to the government. The proposed hike in cotton fee would increase this amount to about Rs. 6. 3 billion, which would be a burden on the growers, he added.

 

He urged the government to make such changes in the Cotton Control Act that would prove mutually beneficial to both the growers as well as ginners.