The Trading Corporation of Pakistan (TCP) has taken proactive measures to restore stability to the white lint cotton market, which has recently fallen below the prescribed intervention threshold.
In its endeavor to uphold its commitment, the TCP is embarking on the purchase of one million bales of lint. The primary goal is to establish equilibrium within the market, ensuring that cotton growers can secure the promised minimum rate of Rs8,500 per maund, a pledge made by the government at the commencement of the sowing season. This initiative seeks to incentivize farmers to re-engage with cotton cultivation.
Reliable sources indicate that the TCP plans to procure one million bales from various regions across the country. Requests for proposals have been issued, inviting bids from cotton procurement agents, the cotton procurement firm, and labor contractors.
The recent upswing in cotton prices within the open market has instilled a renewed sense of optimism among cotton growers. The federal government’s predetermined intervention price of Rs8,500 per maund serves as a benchmark, indicating that if cotton prices dip below this threshold, the TCP will proactively initiate purchasing from ginners, thereby working to stabilise prices.
