Home / Knowledge / News / Textiles / Govt advised cotton procurement for stabilising price
Govt advised cotton procurement for stabilising price
08
Jul '11
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

Must ReadView All

Textiles | On 22nd Apr 2017

Strong rupee & weak trade to affect textile exporters

Textile and apparel exporters' earnings and EBITDA margins will be...

Textiles | On 22nd Apr 2017

Myntra acquires InLogg

With an aim to strengthen supply chain and logistics, Flipkart-owned...

Textiles | On 22nd Apr 2017

Aditya Birla Group launches new variant Liva Crème

After its successful launch of high quality fabric Liva in 2015,...

Interviews View All

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Stefan Warnaar
Peak to Plateau

People are willing to pay for quality and performance

Smarth Bansal
Colorjet India Limited

We would like to venture more companies into the Indian market

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
April 2017

April 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search