In order to bring stability to cotton price and to secure the welfare of cotton cultivators, the Standing Committee of the Pakistan National Assembly on Textile Industry has advised the Government to procure around two million bales of cotton through any governmental agency.
The Committee voiced its discontent over the low prices being offered to cotton cultivators in the market. It mentioned that at the start of the season, cotton was being sold at PKR 4,000 per 40 kg, but eventually the prices slashed to PKR 3,200 per 40 kg. At such low price, the Committee said, cotton cultivators may not even recover their cost of cultivation.
Farmers invest in costly inputs like Bt Cotton seed, urea and other fertilizers, petrol, DAP and water to grow cotton, but in spite of all their hard work they fail to reap reasonable returns for their efforts, the Committee added.
According to the Committee, when the stock of crop with the cultivators gets exhausted, its prices would start soaring, thus helping the traders to make big money at the cost of cultivators.
Meanwhile, Shahid Rashid, Secretary, Ministry of Textile Industry, has told the Committee that in spite of the fact the cotton cultivators were bearing the heat of low prices this year, the Government has no means to stabilize the market price of the commodity.
In addition, he conveyed to the Committee that the Government would require PKR 95 billion to procure two million bales of cotton. In view of the present financial position, it may not be possible for the Government to arrange such a huge fund. Nonetheless, he did add, if the Committee puts forth the recommendation, the same would be presented before the Ministry of Finance.
As per the Committee's recommendations, the Government should procure cotton directly from the farmers so as to ensure reasonable price to them. The Government's declaration to procure cotton would automatically shoot up cotton prices in the domestic market, according to the Committee.
Fibre2fashion News Desk - India
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