Additionally, the Spot Rate was lowered by Rs 3,000 per maund. The energy tariff rise by Rs 20 and the elimination of a special energy rate for export-oriented industries starting on October 1 are being protested by the export sector and the All Pakistan Textile Mills Association.
APTMA opposes the import of cotton from India as well. The Pakistan Cotton Ginners Association requests that Banola be exempt from sales taxes. Additionally, the government should rethink its choice to tax ginning factories based on the use of electricity annually.
Due to cautious textile mill purchasing as compared to ginners’ increased selling, cotton prices in the domestic market kept falling.
The price of cotton significantly dropped by roughly Rs 3000 per maund as a result of the influence of global cotton markets. Although cotton growers and dealers did not lower the price of cotton, they did start selling cotton at lower prices as a result of decreased market demand for cotton.
The ginners were selling cotton at low rates as a result of the sluggish cotton buy, and as a result of their reduced purchases, the price of phutti dropped by Rs 800 to 1000 per 40 kg. The quantity of trade in cotton market was very low.
Due to the government’s guarantees that the energy tariff will be maintained, according to Khurram Mukhtar, textile exporters have secured export orders for the following six months. However, if the price of electricity were to increase starting in October, their only choice would be to halt production. He claimed that as a result of this choice, the energy rate for Punjab’s textile industry will be significantly higher than for Sindh’s.
In his statement, Chaudhry Waheed Arshad, the recently elected chairman of the Pakistan Cotton Ginners Association, demanded that the issues the ginning plants were experiencing be fixed. The government should rethink its decisions to tax Banola’s sales and to levy yearly fees on the electricity used by ginning plants.
