Plan afoot for PCCC's financial independence

Deputy Chairman Planning Commission, Sartaj Aziz is to prepare a plan for future of financially independent Pakistan Central Cotton Committee (PCCC) as both Textile Division and Ministry of National Food Security and Research (MNFS&R) are making efforts for its ownership, well-informed sources told Business Recorder.
Aziz has been assigned this responsibility by the federal cabinet in its meeting held on January 10, 2018 presided over by Prime Minister Shahid Khaqan Abbasi. He, along with other members of the committee, will finalize recommendations.
Giving the background, the sources said that the cabinet was apprised that during a briefing of Ministry of National Food Security and Research held on September 5, 2017 in the Prime Minister's office, the prime minister approved in principle the re-assignment/ transfer of matters retailing to cotton crop and the Pakistan Central Cotton Committee (PCCC) to Ministry of National Food Security and Research.
The sources said the Ministry of National Food Security and Research submitted a summary for the prime minister, wherein it has been requested to transfer the subject of cotton as a crop, along with administrative control of PCCC and the office of Cotton Commissioner (BS-20). The Prime Minister's Office advised that the matter may be referred to the Cabinet Committee on Restructuring (CCoR).
The MNFS&R accordingly submitted a summary for the CCoR on May 11, 2016 wherein the proposal of the ministry was considered. It was decided that the subject of cotton as crop, the PCCC and the Cotton Commissioner will remain under the administrative control of the Ministry of Textile Industry.
The cabinet was informed that MNFS&R is responsible for all matters relating to research and extension service of various crops including cotton. Thus, the functions assigned to PCCC fall in the exclusive domain of the ministry. Furthermore, in order to ensure integrated planning of national cropping patterns and to conduct a cohesive research and development programme, it is logical that the major cash crop of Pakistan should also remain in the fold of overall agricultural productivity system.
According to sources, the ministry submitted a summary for the prime minister, soliciting his orders for transfer of administrative control of PCCC, the office of Cotton Commissioner (BS-20) and cotton related matters from the Ministry of Textile Industry to Ministry of National Food Security and Research. On consideration of the proposal, the prime minister directed that the matter be placed before the federal cabinet for its consideration.
The cotton is a major cash crop of Pakistan and the functions of the PCCC are totally aligned with the mandate entrusted to the MNFS&R which is the focal ministry for liaising with the provincial governments on agriculture related issued. The present system has created a discontinuation between issue pertaining to cotton crop and national agriculture research.
The secretary Textile Industries Division, while presenting his case, pointed out that the cotton cannot be separated from the Textile Industry and the 90 per cent of raw material is consumed by the textile industry. All funding is being provided by the textile sector by levy of Rs 50 per cotton bale and it is not dependent on the government for its funding. It was further discussed that by transferring the subject to MNFS&R, it would disturb its value chain.
The members of cabinet deliberated on the subject and made following observations: (i) the PCCC has failed to perform its mandated functions; (ii) it is an important matter and it should not be decided in a hurry. Rather a committee may be constituted to discuss the matter in a meeting in the presence of representatives of both the ministries and matter be decided thereafter; (iii) most of the members were of the view that this subject be placed with MNFS&R; (iv) there is an issue of conflict of interest between growers and industrialist. The textile sector is earning whereas growers are getting no profit. The PCCC has failed to increase the production of cotton; (v) the pesticides research is being dealt by MNFR&S therefore, the subject be transferred to it; (vi) performance of both the ministries, in the light of objective criteria, be evaluated when they retained PCCC and; (vii) real purpose should be to produce better quality cotton benefiting both growers and industrialists. Hence, the whole value chain has to be looked into holistically.
Sartaj Aziz, sources said, is expected to submit committee's recommendation to the federal cabinet in its forthcoming meeting.