Prime Minister Imran Khan will announce Rs 3,500 per maund (40kg) indicative price for cotton in the next month with an aim to control speedily declining cotton cultivation area in the country. "The Ministry of National Food Security and Research (MNFS&R) has proposed Rs 3,500 per maund indicative price for cotton and purchase of 500,000 tonnes of cotton from the farmers through Trading Corporation of Pakistan (TCP) and the Prime Minister is likely to announce it in the next month," Minister for MNFS&R Sahibzada Muhammad Mehboob Sultan said on Wednesday.
Speaking at the Senate Standing Committee on National Food Security and Research, Sultan said that fixing of indicative price of cotton would play a vital role in increasing the growing area for cotton crop.
The committee which met here with Senator Muzaffar Hussain Shah in the chair recommended to conduct zoning for identifying areas for different crops. In the absence of zoning and due to many other reasons, the cotton growers are shifting to sugarcane in the country.
Secretary MNFS&R Dr Muhammad Hashim Popalzai informed the committee that currently no law exits for crop zoning in the country. Crop specific provincial ordinances including the Sugar Factories Control Act, 1950, Cotton Control Act, 1966 and Punjab Rice Ordinance 1959 exist, he said, adding that as per 18th Amendment, agriculture is the subject of provincial governments while the MNFS&R is responsible for coordination.
About reduction in cost of production, Popalzai said that cost of production of urea is estimated at Rs 715 per bag. With the addition of Gas Infrastructure Development Cess (GIDC) of Rs 405 per bag, the base price was worked out at Rs 1,120 per bag, he said, adding the price was escalated further to Rs 1,150 per bag with the addition of 2 percent GST (Rs 28 per bag) and advance tax Rs 2 per bag. "We have proposed that with the waiver of GIDC (Rs 450 per bag), the price of urea in the local market will decline."
He said the government's 100-Day Agenda specifically catered for lowering the cost of production by increasing per acre yield of major corps like wheat, rice, cotton, maize, and sugarcane. Improvement in the existing cold storage facilities is on the cards to hold agricultural produce if the price crashes to farmer's disadvantage, he said, adding that steps to be taken to ensure availability of certified seeds, awareness about the use of irrigation water, balanced use of fertilizers, modern technology and agriculture financing, especially for the small farmers.
The committee also expressed annoyance when it was informed that there is no laboratory in the country for checking the quality of staple food and pesticide residue.
Shah said that due to absence of laboratories, Pakistani rice has been rejected and become non-competitive in the international market. A senior official of Pakistan Agricultural Research Council (PARC) said Pakistani rice was rejected due to increase in the Aflatoxin level.
The committee discussed the budgetary proposals of the ministry for the financial year 2019-20. An amount of Rs 19,587.62 million was demanded by the ministry under Public Sector Development Programme (PSDP) for 52 projects, of which 18 are ongoing, 21 are new and 13 projects are under the Prime Minister's initiative for the next financial year 2019-20.
The project under Prime Minister's imitative includes national programme for improvement of watercourses in Pakistan, enhancing command areas of small and mini-dams in the arid (barani) areas, enhancement of productivity of wheat, rice and sugarcane, promotion of cage fish culture and cluster development, promotion of trout farming in the northern areas of Pakistan, save the buffalo calf programme, fattening of calf and backyard poultry.
Managing Director Pakistan Agricultural Storage and Services Corporation (PASSCO) Muhammad Khan Khichi told the meeting that the PASSCO did not export 500,000 tonnes of surplus wheat allowed by the government as the provincial governments of Sindh and Punjab had allowed export of the commodity. However, he said that agreement of export of 100,000 tonnes has also been signed.
The meeting was also attended by senators including Najma Hameed, Quratulain Marri, Seemee Ezdi and Hafiz Abdul Karim, and senior officials of the PARC.
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