NA panel to seek 10-15% import duty on cotton
Summon energy ministry over Rs2 hike in electricity tariff
Cotton Commissioner Dr Khalid Abdullah said that the production area of cotton has declined from 770,000 hectare to 400,000 hectare. “This year there was a difference of Rs1,500 per ton of cotton. The rates of cotton remained around the cost of production,” he said. PHOTO: FILE
ISLAMABAD:
In order to facilitate local cotton cultivators, the Special Committee of National Assembly (NA) on Agricultural Products has decided to bring forward a resolution to consider placing import duty of 10 to 15 per cent on cotton.
NA Speaker Asad Qaiser, who chaired the meeting held in the Parliament House on Wednesday, also instructed authorities to determine the practicality of the suggested increase in import duty, which currently stands at zero.
The meeting also expressed concern over the Rs2 increase in price of per unit of electricity under the fuel price adjustment and summoned the energy minister in the next meeting in this regard.
The secretary of the Trade Ministry informed the meeting that Pakistan is a net importer of cotton, importing mainly from USA, India and Brazil. The import of cotton the previous year amounted to $1 billion. The production of cotton in India increased by 150% but did not increase in Pakistan due to which cotton cannot be exported, he said.
Pakistan’s reliance on imported cotton on the rise
Minster for Food Security Sahibzada Mehboob Sultan informed the meeting that steps were taken to provide relief to cultivators whose crops were destroyed due to rain. He added that people would be compensated once losses have been estimated.
During the meeting, Riaz Fatyana said that the duty on import of cotton has been decreased from 5 per cent to zero, while calling for the levying of 10 to 15% duty on import of cotton. He said currently it was benefitting businessmen.
Khalid Khokhar, a representative of a farmers’ collective, said that the production cost in Pakistan was very high which skewed the situation in favour of the All Pakistan Textile Mills Association (Aptma) while resulting in losses for the farmers.
“Pakistani cultivators stopped the plantation of cotton on not receiving profits,” he said. He added that for the improvement of economy, the support price of cotton is necessary.
The secretary for food security, Hashim Popalzai said that they had opposed the decision made by the minister of textiles to impose zero duty on import of cotton. “Cotton is imported due to zero duty on cotton,” he added.
Cotton Commissioner Dr Khalid Abdullah said that the production area of cotton has declined from 770,000 hectare to 400,000 hectare. “This year there was a difference of Rs1,500 per ton of cotton. The rates of cotton remained around the cost of production,” he said.
Speaker Asad Qaiser said that to promote local cotton, a resolution would be brought to the NA in relation to imposition of duty. He directed committee member Syed Fakhar Imam to prepare the draft and discuss it with him for presentation in the NA today (Thursday).
On this occasion, Chaudhry Iftikhar Nazir said that the electricity has been hiked by Rs2 for agricultural consumers.
“The electricity has been increased by Rs2 under the fuel price adjustment but the rate for agricultural consumers is Rs5.35 paisa per unit. Now the pressure of fuel price adjustment has been put on the cultivators,” he said, upon which the committee summoned the federal minister energy in the next session.
The committee also summoned the Aptma representatives in the next meeting on the issue of cotton.
In order to facilitate local cotton cultivators, the Special Committee of National Assembly (NA) on Agricultural Products has decided to bring forward a resolution to consider placing import duty of 10 to 15 per cent on cotton.
NA Speaker Asad Qaiser, who chaired the meeting held in the Parliament House on Wednesday, also instructed authorities to determine the practicality of the suggested increase in import duty, which currently stands at zero.
The meeting also expressed concern over the Rs2 increase in price of per unit of electricity under the fuel price adjustment and summoned the energy minister in the next meeting in this regard.
The secretary of the Trade Ministry informed the meeting that Pakistan is a net importer of cotton, importing mainly from USA, India and Brazil. The import of cotton the previous year amounted to $1 billion. The production of cotton in India increased by 150% but did not increase in Pakistan due to which cotton cannot be exported, he said.
Pakistan’s reliance on imported cotton on the rise
Minster for Food Security Sahibzada Mehboob Sultan informed the meeting that steps were taken to provide relief to cultivators whose crops were destroyed due to rain. He added that people would be compensated once losses have been estimated.
During the meeting, Riaz Fatyana said that the duty on import of cotton has been decreased from 5 per cent to zero, while calling for the levying of 10 to 15% duty on import of cotton. He said currently it was benefitting businessmen.
Khalid Khokhar, a representative of a farmers’ collective, said that the production cost in Pakistan was very high which skewed the situation in favour of the All Pakistan Textile Mills Association (Aptma) while resulting in losses for the farmers.
“Pakistani cultivators stopped the plantation of cotton on not receiving profits,” he said. He added that for the improvement of economy, the support price of cotton is necessary.
The secretary for food security, Hashim Popalzai said that they had opposed the decision made by the minister of textiles to impose zero duty on import of cotton. “Cotton is imported due to zero duty on cotton,” he added.
Cotton Commissioner Dr Khalid Abdullah said that the production area of cotton has declined from 770,000 hectare to 400,000 hectare. “This year there was a difference of Rs1,500 per ton of cotton. The rates of cotton remained around the cost of production,” he said.
Speaker Asad Qaiser said that to promote local cotton, a resolution would be brought to the NA in relation to imposition of duty. He directed committee member Syed Fakhar Imam to prepare the draft and discuss it with him for presentation in the NA today (Thursday).
On this occasion, Chaudhry Iftikhar Nazir said that the electricity has been hiked by Rs2 for agricultural consumers.
“The electricity has been increased by Rs2 under the fuel price adjustment but the rate for agricultural consumers is Rs5.35 paisa per unit. Now the pressure of fuel price adjustment has been put on the cultivators,” he said, upon which the committee summoned the federal minister energy in the next session.
The committee also summoned the Aptma representatives in the next meeting on the issue of cotton.