ISLAMABAD: Considering the cost of production and expected international price scenarios of future markets, Ministry of National Food Security and Research has proposed to revise intervention price of seed cotton (Phutti) to Rs 6,000 per 40 kg for crop season 2022-23.
The proposal also aimed at reviving cotton production in the country, bring stability in domestic market and assure fair return to the farmers for their produces, said an senior official in the Ministry of National Food Security and Research.
Talking to APP here on Wednesday, he said that the ministry has also proposed for constituting a Cotton Price Review Committee (CPRC) with mandate to review market prices and propose intervention at fortnightly bases. He said that the proposals would be submitted in the meeting of Economic Coordination Committee (ECC) of Cabinet for approval that would help to develop and promote declining major cash crop for achieving sustainable agriculture development and prosperity of the farming communities across the crop sowing areas in the country.
The CPRC would regularly monitor the cotton prices in the main domestic markets of Punjab and Sindh, as well as those in the international markets and issue a brief price report at weekly interval, he said adding that under the suggested framework, the Trading Corporation of Pakistan (TCP) would intervene to buy up to 2 million bales of lint cotton on the pre-determined price based of Rs. 6,000 per 40kg, he said adding that it would help to ensure fair rate of return to farmers.
He further informed that price intervention policy during last year (2021-22) resulted in price stability in domestic market and fair investment in crop management, he said adding that it also resulted in 2 million bales additional production despite that the area under crop production declined by 7%.
He told that the country has potential to produce 20 million bales in short period of time, if historic cotton area re-gained; farmers supported with appropriate technology and ensured a fair price.