- Takes notice of violations of govt’s initiative aims at benefitting farmers
- Terms bumper cotton crop blessing for country, saying maximum profits should be reaped by growers
ISLAMABAD: Taking notice of the buying of cotton below the price fixed by the government to support farmers, caretaker Prime Minister Anwaarul Haq Kakar on Sunday directed the Trading Corporation of Pakistan (TCP) to look into the matter and submit a report in this connection.
The government had fixed the price of cotton, but it was being observed that it was purchased from farmers below that minimum rate in some places, the PM Office Media Wing said in a news statement.
The interim premier noted that the yielding of a bumper cotton crop was a blessing for the country and its maximum profits should be reaped by the farmers.
He added that the government had issued clear instructions over its purchase price to protect the farmers against any losses,
In March this year, the then premier Shehbaz Sharif approved Rs8,500 per 40 kg (maund) as the support price of cotton to facilitate its farmers,
In August, the TCP decided to purchase one million bales of cotton following the fall in its prices in the open market below the intervention threshold.
It invited bids from cotton procurement agents, acquirement firms and labour contractors.
At that time, Cotton Ginners Forum Chairman Ihsanul Haq said the subsidised rates for electricity and gas to textile mills had been withdrawn on the International Monetary Fund’s (IMF pressure). Coupled with a record hike in production costs, an unusual decline was observed in cotton purchases by the textile mills.
Consequently, cotton prices slid from Rs9,500 to the range of between Rs7,500 to Rs8,000 per maund in the open market.
Last Wednesday, the government projected cotton production at 11.5 million bales from cultivation over an area of 2.4 million hectares this season, which shows a significant jump of 126.6% over the output of last year.
Stabilizing cotton price in collaboration with TCP’
Earlier, Federal Minister for National Food Security and Research Dr Kausar Abdullah Malik on Sunday met Punjab Chief Minister (CM) Syed Mohsin Naqvi and exchanged views over the steps that could be taken to increase different crops’ production in the province.
The minister, on the occasion, congratulated the chief minister on getting record cotton production this year. Malik was also appreciative of CM Naqvi’s decision to hold provincial cabinet meetings at divisional headquarters.
Both also discussed fixing the prices of different crops. They agreed on stabilizing the rate of cotton crop in collaboration with the Trading Corporation of Pakistan (TCP).
The chief minister urged the federal government that in order to achieve the objective, it should purchase the crop from the TCP. The chief minister was of the view that stability in prices was necessary if farmers were to be given complete reward for their hard work after getting increased cotton production.
Terming increased cotton production as a good omen, he said that foreign exchange could be earned through the export of value-added products.
Caretaker CM Punjab calls on PM
Caretaker Chief Minister of Punjab Mohsin Naqvi on Sunday called on Caretaker Prime Minister Anwaarul Haq Kakar. During the meeting, they discussed matters related to the province, PM Office Media Wing said in a press release.
نگران وزیراعظم انوار الحق کاکڑ سے نگران وزیر اعلیٰ پنجاب محسن نقوی کی ملاقات
صوبہ پنجاب سے متعلق امور پر بات چیت pic.twitter.com/9tDumpMjwo
— Government of Pakistan (@GovtofPakistan) October 15, 2023
