Procuring seed, lint cotton at high prices: KCA concerned over government proposal

Amin Hashwani, the Chairman, Karachi Cotton Association (KCA) has expressed deep concerned over the proposal being considered by the government to procure seed/lint cotton at high prices to support the growers. Reiterating the views of the Association, the Chairman stated that any unnatural intervention by the government through the TCP will be inefficient, impractical and counter productive and will also fail to meaningfully benefit the growers.
The Association is of the view that the most efficient way to compensate the cotton growers in adverse conditions would be to provide a direct subsidy on the basis of acreage sown, as is practised in other countries. This would not only ensure direct benefit to the growers without any middlemen or malpractice but also help minimise the losses to the government, as otherwise, the desired benefit will not be passed on to the growers as was the case last season. The government can also provide support through subsidize electricity and fertilizer to reduce their production cost.
To procure Seed Cotton by the TCP and have it processed in hundreds of ginning factories is cumbersome, impractical and exposes to systematic corruption and mismanagement. In order to safeguard the interests of all stakeholders of the cotton economy including the cotton growers, the KCA strongly suggests the Government to allow free market mechanism to function without government's intervention to ensure price levels that will keep all stakeholders competitive.-PR