The cotton growers have demanded withdrawal of TCP tender for procurement of one million cotton bales, saying that 85 percent of cotton has already been sold by them at throwaway price. Farooq Bajwa, Chairman Convenor Punjab Water Council told Business Recorder that the growers are sowing wheat at present after incurring huge losses in cotton sales.
The government's intervention to support the cotton growers was merely eyewash, as the 85 percent of the cotton is out of the hands of growers when the TCP has floated tenders to improve prices, he added. He said that only few would get benefit from the procurement of one million cotton bales through TCP.
It may be noted that the Economic Co-ordination Committee (ECC), on the recommendation of the Agriculture Policy Institute, had approved a support price of Rs 3000 per 40 kg and directed the TCP to procure one million cotton bales for stabilisation of the price of cotton seed.
According to him, the government should subsidise cotton seed by increasing regulatory duty on palm oil by Rs 40 per ton that would equalise the price of cotton seed in local market to benefit to the cotton growers. It seems that the objective of the ECC remained unsuccessful as the average price of cotton seed could not cross Rs 2300 per maund against the desired level of Rs 3000 per maund.
Director Farmers Associates Pakistan (FAP) Bilal Israel advised the government to follow India where the government announces support price for cotton seed like wheat or any other crop. There is no need of reinventing the wheel and the government should follow India for direct subsidy to growers, he added.
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