ECC to fix Cotton intervention price at Rs 5000 in Pakistan
Aftab Ahmed
Islamabad: The Economic Coordination Committee of the Federal Cabinet on Monday is likely to approve a cotton intervention price of Rs 5000 per 40 kg in Pakistan for the current cotton crop, sources familiar with the development told Newztodays.com.
Pakistan is mainly dependent on the import of cotton as farmers have not been able to increase production due to low prices.
The ECC, under the chair of Shaukat Tarin, will consider the summary of the Ministry of Food Security for approving the cotton intervention price for crop 2021-22 in Pakistan at the rate of Rs 5000 per 40 kg as a guarantee to sow the crop.
More Read: Pakistan faces historical decline in cotton production
In another summary of the Ministry of Industries & Production, the ECC will also consider the extension of the Prime Minister’s relief package for the next six months for five basic commodities on Utility Stores Corporations (USC).
According to a summary of the Food Ministry, the cotton intervention price is proposed at Rs 5000 per 40 kg against the prevailing cotton market price of Rs 6000 per 40 kg. But when the cotton crop from Punjab arrived in late August, the prices of cotton dropped significantly depriving the poor farmers of reaping the dividends from this cash crop.
Last year, the ECC under the chair of Dr. Hafeez Sheik on the opposition of Textile Lobby under the patronage of Hammad Azhar, the then Minister for Industries and PM advisor on Commerce & Textile, Abdul Razzak Dawood also rejected cotton indicative price of Rs 4200 per 40 kg.
Although two key ministers from Southern Punjab—Shah Mehmood Qureshi and Khusroo Bakhtiar—supported the Ministry of Food’s move initiated by Syed Fakhar Imam.
According to the officials working in the Ministry of Food Security, the approval of cotton intervention price will help to increase the production of the commodity by at least 10 percent. It is worth mentioning that the present PTI regime has not yet announced increased cotton indicative price.
Finance Minister, Shaukat Tarin announced in the recent federal budget and later in the post-budget events that the PTI government is focusing on agriculture in order to save foreign exchange by not importing stable foods and other commodities.
According to the summary of the Ministry of Industries & Production, the ECC will also take up the extending PM Relief Package for USC on five basic commodities including sugar, wheat flour, Ghee, pulses, and Rice till December 2021.
More Read: USC fails to achieve sale target
Under the PM relief package, the government has fixed a sugar price of Rs 68 per kg, 20 kg wheat flour is Rs 800, and Ghee at Rs 170 per kg. The Prime Minister has announced Rs 71 billion two and half year package for this package.
Besides this, the ECC will also consider a summary of the Maritimes Affair for demurrage and other claims from Pakistan State Oil (PSO), said the agenda of the ECC.
The other agenda items include the technical supplementary grants and additional funds for various ministries and divisions.
