The federal government is considering a plan to provide cotton producers in the country a globally competitive support price in order to encourage production and pump money into the rural economy.
The federal government has formed a committee to calculate the cotton support price for local farmers using a novel methodology. The committee has the authority to distribute 90% of the current international price plus freight expenses. According to a senior Food Security Ministry official, farmers used to receive 20 to 30% less than market rates on the international market.
There have been many setbacks to the ministry’s intention to raise cotton prices in order to encourage farmers to grow more cotton. The plan would be subjected to close review by the cabinet’s pro-textile lobby, particularly the advisor on textiles and industries. A Ministry of Food Security official voiced concern that there may be stumbling blocks in getting clearance from the federal Cabinet.
Pakistan Kissan Ittehad (PKI) expressed appreciation for the Federal Ministry of Food Security’s efforts in providing a fair cotton price for farmers. Ejaz Rao, a progressive cotton producer from the primary cotton growing area of Bahawalpur, stated that the crop is doing well so far despite a severe rain spell a few days ago.
