Considering the cost of production and the international price scenarios expected in future markets, the Ministry of National Food Security and Research has proposed to revise the intervention price of seed cotton (Phutti) to Rs 6,000 per 40 kg for the 2022-23 agricultural season.
The proposal was also aimed at reviving cotton production in the country, stabilizing the domestic market and ensuring a fair income for farmers for their products, said a senior official from the Ministry of National Food Security and Research.
Speaking to PPA here on Wednesday, he said the ministry has also proposed to form a Cotton Price Review Committee (CPRC) with a mandate to review market prices and propose intervention every fifteen days.
He said the proposals would be submitted to the Cabinet Economic Coordinating Committee (ECC) meeting for approval, which would help develop and promote the decline of major cash crops to achieve sustainable development of agriculture and the prosperity of farming communities in crop planting areas in the country.
The CPRC will regularly monitor cotton prices in major domestic markets of Punjab and Sindh, as well as international markets and issue a brief price report at weekly intervals, he said, adding that within the suggested framework , the Trading Corporation of Pakistan (TCP) would step in to buy up to 2 million bales of cotton lint at the pre-determined price on the basis of Rs 6,000 per 40 kg, he said, adding that this would help ensure a fair rate of return to farmers.
He further informed that the price intervention policy over the past year (2021-22) has resulted in price stability in the domestic market and fair investment in crop management, he said. he said, adding that it had also resulted in an additional production of 2 million bales despite the fact that the area devoted to agricultural production had decreased by 7 pieces.
He said the country had the potential to produce $20 million bales in a short time, if historic cotton acreage regained, farmers supported with appropriate technology and ensured a fair price.