Ministry of Textile Industry has submitted a summary to Economic Co-ordination Committee (ECC) of the Cabinet, asking the government to announce indicative price of Rs 3000 per 40 kg of Putti/seed cotton and procure two million bales during the cotton season 2016-17. According to the summary, a copy of which is available with Business Recorder, the Prime Minister in his capacity as the Minister in-charge has seen and approved the summary to be presented to the ECC of the cabinet.
Dr Farrukh Javed, Punjab Minister for Agriculture, in his letter addressed to Principal Secretary to the Prime Minister with copies endorsed to other relevant ministries including textile ministry had proposed that the federal government should announce indicative price at this moment and Trade Corporation of Pakistan (TCP) may be directed to make advance arrangements to buy at least two million bales of good cotton at appropriate stage starting from picking of the cotton.
The minister had further stated that cotton farmers across the country have suffered huge loss during the past two consecutive years due to which they are reluctant to sow cotton during the current crop season. He also stated that according to the field reports, it is feared that even 50 percent sowing target may not be achieved if a farmer friendly intervention from the government, in the form of indicative price @ Rs 3000 per 40 kg (Putti/seed ctton) is not announced.
The Ministry of National Food Security & Research (NFS&R) while giving its views/comments on this proposal has intimated that indicative price of cotton has been calculated by Agriculture Policy Institute (API) adopting the standard procedure of field survey and consultative process with all stakeholders at federal and provincial levels. According to the API estimates, cost of production per 40 kg turns out to be Rs 3981 for Punjab and Rs 2702 for Sindh. The NFS&R ministry has stated that indicative price for 2016-17 crop at Rs, 3000 both for Punjab and Sindh is justified.
It further maintained that in a meeting of stakeholders of cotton held earlier by textile ministry, a number of participants of the meeting had inter-alia suggested that indicative price of cotton may be fixed and announced by the government every year well before the start of the cotton season to motivate the farmers to cultivate cotton. The fixing of indicative price of cotton is supported by Textile Ministry.
The summary submitted to the ECC states, "It is proposed that the indicative price of Rs 3000/- per 40 kg of putti/seed cotton may please be announced by the government at the earliest so that cotton farmers manage their crop in a better way and TCP may procure two million bales of cotton lint on the price determined (c) Rs 3,000/- 40kg of seed cotton during the cotton season 2016-17".