The government on Monday announced it would direct the Trading Corporation of Pakistan (TCP) to purchase cotton from growers at Rs 925 per 40 kg, even if the price of the commodity was less in the international market.
Commerce minister Humayun Akhtar Khan and Minister for Food, Agriculture and Livestock, Sardar Yar Muhammad Rind assured the National Assembly that government was well aware of the problems of the growers.
While responding to a calling attention notice raised jointly by treasury and opposition members, Humayun Akhtar assured the House that TCP would intervene at ginners' level, if cotton price declines from Rs 925 per 40 kg, the support price for the commodity announced by the government.
Rind said the government had released a hefty amount to TCP enabling the body to purchase 0.1 million bales of cotton as per cabinet decision, in order to save the growers from expected loss due to downward trend in cotton prices in the open market.
The government would also consider purchasing more amount of the commodity from growers and will take all necessary steps to stabilise commodity's price in the open market, he said
Earlier, taking part in a heated debate on the issue, Pakistan Peoples Party Parliamentarians (PPPP) Shah Mehmood Qureshi questioned the amount of Rs 925 as support price, saying farmers would find it difficult to get return of their input expenditures at this price.
He also criticised the lack of proper co-ordination and correspondence among the finance, commerce and agriculture ministries in running the affairs of the TCP.
Qureshi asked the Finance Division to make it obligatory on the State Bank of Pakistan to define a credit limit for TCP for smooth functioning of its affairs.
Raising his concern over lack of agri-research infrastructure in the country, PPPP MNA specifically mentioned that no such variety of cotton had yet been bred, which could offer resistance against virus attacks.
He suggested that TCP should intervene if cotton price decreases from Rs 925, but should withdraw from the market if the price goes up.
Makhdoom Ahmed Alam Anwar of the PML questioned the decision of allowing the import of cotton despite increase in acreage in Punjab. He feared it would further intensify the downward trend in cotton prices in the open market.
Alam Anwar also criticised the non-implementation of decision of tax exemption on cotton in certain calamity-hit areas of Seraiki belt in Punjab.
Other members from both sides of the aisle raised the issues of pesticide shortage in the market and water shortage in Sindh for cotton season.