The Trading Corporation of Pakistan (TCP) has taken steps to address the decline in white lint prices by entering the cotton market. The prices of white lint have fallen below the intervention threshold, prompting the TCP to initiate measures to stabilize the market.
To achieve this, the TCP has decided to procure one million bales of lint. This move aims to ensure that cotton growers receive the minimum promised rate of Rs8,500 per maund, as pledged by the government at the beginning of the sowing season. This promise was made in order to incentivize farmers to cultivate cotton once again.
Reliable sources indicate that the TCP’s initiative encompasses the purchase of one million bales of lint from various regions across the nation. The process includes the solicitation of bids from cotton procurement agents, the cotton procurement firm, and labor contractors.
The recent uptick in cotton prices within the open market has instilled a sense of optimism among cotton growers. The intervention price was set by the federal government at Rs8,500 per maund. It was further specified that if cotton prices were to fall below this designated threshold, the TCP would intervene by purchasing from ginners. This strategic intervention is intended to stabilize prices and safeguard the interests of both growers and the cotton industry at large.
The TCP’s involvement in the cotton market underscores its commitment to supporting the agricultural sector and ensuring the livelihoods of farmers. By stepping in to stabilize prices, the TCP aims to create a favorable environment for cotton cultivation, enabling farmers to receive fair compensation for their efforts.
This move not only reinforces the government’s commitment to the welfare of its agricultural community but also contributes to the stability of the broader economy. The TCP’s active involvement is a testament to its role in safeguarding the interests of both producers and consumers in the cotton industry.