The Trading Corporation of Pakistan (TCP) has received a poor response in the fourth cotton tender as only two bids were submitted for procurement of 4,600 bales against the offered quantity of 88,600 bales. The state-run grain trader is facing difficulties in offloading cotton, procured on federal government directives during the last season to support farmers and stabilise prices in the domestic market. So far, cumulatively, TCP has conducted four tenders for the sale of 95,400 cotton bales of which two tenders were scrapped by the state-run grain trader as bids were lower than the reserve price.

Some 10,800 cotton bales have been sold through the remaining two tenders. In response to the fourth tender, opened on August 31, 2015, only two parties participated and submitted five offers for procurement of 4,600 cotton bales against the offered quantity of 88,600 bales.

TCP is likely to issue a fresh tender for the sale of the remaining 84,600 cotton bales as any delay in the sale of the commodity will increase losses. In November last year, TCP procured some 95,400 bales from ginners. However, presently it is compelled to offload these stocks at lower prices due to the lower price trend in domestic and international markets. The Federal government has pledged to pay the price difference in procurement and sale of the commodity.