The government is likely to make a final decision with respect to announcement of indicative price of cotton at Rs 4,000 per 40kg today (Tuesday) with an aim to control speedily declining cotton cultivation area in the country. "A committee headed by Adviser to the Prime Minister on Finance, Dr Abdul Hafeez Sheikh will take up the summary moved by the Ministry of National Food Security and Research (MNFS&R) regarding fixing indicative price of cotton at Rs 4,000 per 40kg, which was deferred during the previous meeting of the Economic Coordination Committee (ECC) on the request of Adviser to Prime Minister on Industries and Commerce Razak Dawood," Secretary MNFS&R Dr Muhammad Hashim Popalzai said.
He said that the meeting will be held today (Tuesday), adding that the adviser to the prime minister on industries and commerce will also attend it. The committee is likely to make a final decision regarding the announcement of indicative price of cotton before the meeting of the federal cabinet, he said.
Popalzai said that the MNFS&R also proposed to constitute a committee comprising members from the ministries of commerce and textile to keep an eye on the price of cotton in the market and look into the situation when the price of the commodity comes down from the specific level.
While briefing the Senate Standing Committee on National Food Security and Research on indicative price of cotton, he said that his ministry moved a summary for fixing the indicative price of cotton and all stockholders agreed to the summary except All Pakistan Textile Mills Association (APTMA) and the Ministry of Textile.
The committee recommended the government to announce indicative price of cotton on immediate basis as the full picking flow of cotton will start within three to four weeks. Chairman committee Senator Muzaffar Hussain said if the government fails to fix the indicative price of cotton in this month then the growers will switch to other crops and production of cotton crop will further decline in the country.
While briefing the committee on sowing cotton crop of 2019-2020, Cotton Commissioner MNFS&R Dr Khalid Abdullah said that 95 percent sowing of target (2.895 million hectares) has been achieved which is 14.4 percent more than that of last year. Punjab province has cultivated 2.044 million hectares which comprises 95 percent of the targeted area of 2.145 million hectares, he said, adding that in Sindh province, 96 percent of target or 0.615 million hectares out of 0.640 million hectares has been achieved. He said that the government has fixed production target of 12.7 million bales from an area of 2.895 million hectares.
About availability of wheat and increase in flour prices in the country, Popalzai told the committee that overall availability of wheat is estimated at 28.058 million tonnes including production of 24.279 million tonnes and leftover stock of 3.77 million tonnes as compared to the national requirement of 25.84 million tonnes.
He said that the main reasons behind surge in the prices of flour in spite of sufficient availability of the commodity are smuggling of wheat to Afghanistan and Central Asia, hoarding, shifting of flour mills into poultry feed mills, production loss of wheat crop due to heavy rains, increase in the international wheat prices, permission of the federal government to allow export of public sector wheat, and no restriction on commercial trade of wheat.
He also said that price of flour came down following imposition of ban on export of wheat and wheat flour. Following the instructions of the federal government, Punjab has started release of wheat from its stock to flour mills which will also play role in declining the flour price, he said.
He said that the government has also convened a meeting of National Price Monitoring Committee headed by advisor on finance on August 8 and provincial government have been contacted to strengthen the district price monitoring system for strict monitoring of local wheat prices.
The federal secretary also said that a notification will be issued in a day or two regarding starting of quarantine testing of sacrificial animals being imported from Afghanistan via Torkham border. Senator Qurat-ul-Ain Marri, Senator Professor Sajid Mir, Senator Sajjad Hussain Turi, Senator Najma Hameed, Minister for MNFS&R Sahibzada Muhammad Mehboob Sultan and senior officials of the MNFS&R attended the meeting.
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