The announcement by the government to import cotton through Wagha border has depressed the local cotton market and seed-cotton (phutti) prices have gone down to Rs 1350-1450 per 40 kg, sources told Business Recorder here on Monday.
The price of phutti per 40 kg in the local market was between Rs 1650 and Rs 1750, but the decision to import from India has decreased the prices in the market, depriving the growers of the return they deserve. Sources said that the government is importing three million bales cotton from India, which is badly hurting the growers who are getting the price much below their expectations.
They said that this year, cotton crop suffered a heavy loss just because of the 'mealy bug' and the Cotton Leaf Curl Virus (CLCV) attacks. The growers had to do at least 2-3 sprays of pesticides to save the crop. Their cost of production per acre has gone up to Rs 12000 to Rs 13000.
"When cotton arrivals started in domestic market, the growers were hopeful that they would get good return of their produce but the government's announcement to import cotton has frustrated their hopes of getting good return, sources said.
They said that cotton could be imported in February 2008 to save the growers from loss as well as to stabilise the local market. "After January 15, cotton prices will again increase in the domestic market, but then the farmers will not get the benefit, as by the end of December, they will have sold all their cotton", sources said.
When this scribe asked a senior official of the Ministry of Textile, he said that cotton was being imported just for the textile industry, as local production is not sufficient to meet the demand of mills.