High energy, financial costs cited: Cotton output likely to decline, NA panel told

ISLAMABAD: Cotton production in the country is forecast to decline in 2024-25 due to high energy and financial costs, the Ministry of National Food Security and Research (MNFS&R) informed a parliamentary body on Friday.

The National Assembly Standing Committee on National Food Security and Research met with MNA Syed Hussain Tariq in the chair was informed by MNFS&R that cotton production in the country is forecasted to decline in 2024-25 due to high energy and financial costs which will constrain the textile sector’s growth.

The government has set a target of $25 billion in textile exports for 2023-24 but exports are expected to fall short of this goal, says a brief submitted by MNFS&R before the committee.

Local textile industry facing severe crisis: KCBF chief

The committee expressed grave concerns over the perpetual decline in cotton production and cotton prices in the country.

Members highlighted the urgent need for effective remedies to stabilise and boost cotton production, including subsidies, better pest control measures, and the adoption of modern farming techniques.

The committee termed the action taken by the government in the wake of last year’s wheat import scandal inadequate and constituted a sub-committee to probe the matter again to bring to book the people responsible for the scam.

The parliamentary also authorised the sub-committee to probe the non-provision of quality seed to the farmers. Import of wheat at the wrong time has caused irreparable damage to farmers across the country, Tariq said.

The majority of the members of the parliamentary body were of the view that the suspension of 14 to 15 government officials in the wake of the inquiry committee constituted by Prime Minister Shahbaz Sharif would play no role in preventing happening of such scams in future as well as recovering damages caused by the scam until action was not taken against the big fish involved in this scandal.

Rana Tanveer Hussain, federal minister for Ministry of National Food Security and Research (MNFS&R) said that over 15 senior officers of his ministry have been suspended in the wake of an inquiry committee constituted by the prime minister to probe the matter.

The minister also stressed the promotion of mechanized farming in the country to increase the production of major crops.

Makhdoom Zain Hussain Qureshi said that over 90,000 families were affected due to the wheat scam. Till date many farmers have not sold wheat, he said.

Muhammad Moeen Wattoo said that the import of wheat has not only discouraged farmers but also brought down the prices of agriculture land in the country.

However, the committee members termed the action insufficient and the chairman constituted a sub-committee to probe the matter.

The committee authorised the sub-committee to investigate the non-provision of hybrid seed to the farmers.

The committee also proposed setting up a special cell in MNFS&R for curbing the smuggling of wheat, sugar and other commodities from the country.

The formation of the special cell is necessary in order to coordinate with all stakeholders deployed at the border, said Syed Hussain Tariq.

The minister said that due to effective efforts of the present government, 90 per cent of the smuggling of wheat, sugar and fertiliser has been controlled.

The committee chairman said that in Pakistan farmers are under pressure as following wheat crops they are facing losses in cotton and rice crops.

During the meeting, the current challenges and administrative difficulties confronted by the Pakistan Central Cotton Committee (PCCC) were thoroughly debated.

The discussion focused on inefficiencies within the existing operational protocols, bureaucratic impediments, and the necessity for enhancement of the resource management.

The committee emphasised the critical need for a strategic restructuring to reform the PCCC’s organisational framework and processes. Additionally, the committee engaged in comprehensive deliberations regarding the outstanding issues between the PCCC and the All Pakistan Textile Mills Association (APTMA).

A representative of the ginner association told the committee that Rs2,000 tax per maund has been imposed over ginning. He demanded the government to lift the ban on GM cotton.

A representative of APTMA said that our main industry of spinning and weaving are going to close.

Imported cotton is cheaper than local cotton, he said, adding that in Uzbekistan and India, electricity is six cents per unit while in our country electricity is 14 to 17 cent per unit. He said that there is no standard for cotton seed in Pakistan.

The minister said that he has tried a lot to bring down the price ofurea fertiliser up to Rs4,000. Currently, urea fertilisers are available at the rate of Rs4,600 of Rs4,700 per bag in the country, he said, adding that Deputy Prime Minister Ishaq Dar will preside over a meeting today (Saturday) regarding the provision of gas to fertiliser factories.

He further said that the International Monetary Fund (IMF) does not oppose transparent targeted subsidies. The prime minister is ready for targeted subsidy but it requires formation of a transparent procedure, he said.

MNAs Rasheed Ahmad Khan, Rana Muhammad Hayat Khan, Chaudhry Iftikhar Nazir, Mussarat Asif Khawaja, Zulfiqar Ali Behan, Farrukh Khan, Usama Hamza, Keso Mal Kheal Das, and senior officials attended the meeting.

Copyright Business Recorder, 2024