Farmers seek 30% hike in cotton purchase price

Growers fear drop in cultivation.

HYDERABAD:

Farmers want the purchasing price of cotton crop to be increased by at least 30 per cent as they fear a downturn in cotton cultivation in Pakistan.

“The government should fix a rate of Rs3,000 per maund at least, to prevent a repeat of last year’s situation when cotton shortage hit the market,” said Sindh Chamber of Agriculture (SCA) General Secretary Nabi Bux Sathio, while talking to The Express Tribune.

The government imported 2 million bales of cotton last year as the local production fell short by 3.5 million bales at 11.5 million bales. “$2 billion were paid for the import,” said Sathio, contending that the government can easily save its foreign exchange reserves by offering adequate price to the local growers.

“We expect up to 15% surge in cotton production this year as compared with last year. In view of the local demand and high-priced import last year, the farmers felt encouraged to enhance the sowing,” he said.

He, however, also warned that low prices are likely to discourage cotton growers, which would consequently lead to a drop in production next year. “The international price of cotton per maund equals to Rs3,888. But we are being paid between Rs2,200 to Rs2,300,” he said.

SCA, in its meeting on Friday, called for implementation of the international market price in local purchasing. “Last year the cotton factories were compelled to buy cotton at Rs4,800 per maund owing to the shortfall,” said SCA President Dr Nadeem Qamar, while presiding over the meeting.







Published in The Express Tribune, July 23^rd, 2011.