Ginning factories halt operations in protest

MULTAN: Ginning factories in Punjab and Sindh Wednesday halted operations for an indefinite period in a protest against the government for not resolving their issues.

Talking to The News, Pakistan Cotton Ginners Association president Mian Javed Suhail Rehmani said all the ginning factories have stopped operations across the country because the authorities concerned were not serious in addressing their problems.

He said ginners would not purchase Phuthi from peasants and will also not supply lint to textile industry and spinners. PCGA spokesperson Shahzad Ali Khan said some 1,200 ginning factories have halted the operations after consultation with ginners in Punjab and Sindh.

The spokesman said picking of Phuti got started in some districts such as Badin but ginners would not purchase Phuthi from them. Shahzad said 0.5 million bales of cotton are lying with ginners and the government has requested activation of Trading Corporation of Pakistan to buy cotton stock from ginners but no measures have been taken to lift the stock. He said unsold stock must be exempted from Income Tax, Sales Tax and other taxes.

He said when ginners would not paid against ginned cotton, how they would be able to pay to cotton growers. When farmers are not paid they would not be able to buy fertilizers, pesticides and seeds, he said. He demanded the pledged stock must be released as per market demand.

He also demanded the government deferring bank guarantees for one year because they cannot be adjusted under the prevailing situation. He demanded the government to allow the textile sector to run their mills, so that they could clear their outstanding dues of Rs 30 billion and frame a viable policy to clear outstanding money. The numbers of ginners interviewed on closure of operations and they said the present business environment is not favourable to continue ginning operations.

The ginners said the PCGA had appealed the government writing off bank marks from January to June 30, 2020 in the wider interest of ginning business to survive but the government did not give favourable response.

The ginners had appealed to the government devising a strategy for the swift recovery of Rs 25-30 billion stuck up with textile millers but no measures have been taken in this connection.

They said the ginners had appealed the government promulgation of Economic Coordination Committee decision of exempting oil cake (Khal) from sales tax but the government did not take measures for the promulgation of ECC decision.

The ginners said ten years withholding tax refund claims have been frozen with the government and the present repeatedly appealed for refund claims but no positive measures have been taken from the government. At this crucial juncture, they demanded the government order for the immediate clearance of outstanding refunds of withholding tax pending for the last 10 years.

The ginners had appealed the government to remove 10 percent sales tax on cotton and fixing electricity tariff for the ginning industry equal to the textile industry but the government is ignoring their problems, they said.