Market mechanism: PCF rejects any intervention

Pakistan Cotton Forum (PCF) Chairman, Seth Muhammad Akber has rejected any intervention to the free market mechanism in the cotton economy of the country.
The chairman PCF said the cotton farmers are major beneficiaries of the free market mechanism, as return on agricultural produce has increased manifold against all previous records and around Rs 240 billion has directly been transferred to the cotton growers by the industry due to attractive support price and increase in commodity prices globally. Above all, he said, the availability of free market mechanism has played vital role in flourishing rural economy.
He said the farmers community represents 70 percent of the population and present government has won its hearts by protecting lucrative prices for agriculture products. Akber said all the stakeholders at the platform of PCF including Farmers Associate Pakistan (FAP), Pakistan Cotton Ginners Association (PCGA), Karachi Cotton Association (KCA) and All Pakistan Textile Mills Association (Aptma) have a strong conviction that any intervention to the free market mechanism would be detrimental to the growth of rural economy in Pakistan.
He said the target of 15 million bales set for the new crop season is likely to be achievable due to enthusiastic farmers community prepared to grow more cotton this year. The chairman PCF said there were chances of increase in cotton crop last year but unexpected floods hit the rural economy hard. He added in the same breathe that good days were likely to return to the rural economy and cotton production is likely to reach record level this year.
He also urged the government to ensure all inputs to the cotton growers including fertilisers, seed and water to achieve broader national economic objectives. Akber lamented that the vested interest elements in the ancillary industry are adhering to their hidden agendas by pushing the government to distort free market mechanism by banning exports of cotton trade. He said the ancillary industry should act prudently, as abundant cotton would be available ahead to convert it into value-added products.