Minimum Support Price for Cotton to be Set Between Rs. 8,000 and 9,000

The Senate Standing Committee on National Food Security and Research recommended fixing the minimum support price for cotton at Rs. 8000-9000.

The parliamentary panel meeting was chaired by Syed Muzafar Hussain Shah here on Thursday.

Regarding the matter of fixing the minimum support price for the cotton, the Chairman Committee observed that non-fixation of the minimum support price for the cotton has forced the farmers to shift to other crops causing great loss to its production.

The Ministry of National Food Security and Research informed that the minimum support price for cotton has been fixed at Rs. 5,700. To which the Chairman Committee responded that the said minimum support price is not enough to meet the requirement of farmers. The Committee recommended fixing the minimum support price for cotton at Rs. 8000-9000.

The recommendation of the committee will be presented before the Economic Coordination Committee (ECC), the secretary of National Food Security and research assured the committee members.

The panel head stated that cropping zones must be made and the federal government, being the coordinating and focal agency, should prevail upon the provinces to enforce the implementation of such zones. Otherwise, the committee fears that in the coming years cotton cultivation will further decrease causing a huge loss to the national exchequer. Senator Jam Mehtab urged the ministry for ensuring the use of good quality pesticides so the production of crops increases.

The Committee showed concern over the drop in wheat production and sought a briefing from the ministry regarding the reasons for the shortfall in wheat production, the reason thereof and what recommendation did the ministry going to formulate so as the wheat production swells.

On the suggestion put forward by Senator Sania Nishtar, the committee also directed the ministry to evolve an institutional mechanism for calculating the cost of production of various crops based on data from various independent sources.

The Chairman Committee sought a briefing from the ministry regarding the reasons for the shortfall of wheat production, the reason thereof and what recommendation did the ministry going to formulate so that the wheat production upswing.

At the suggestion of senator Sania Nishtar, the committee directed the ministry to evolve an institutional mechanism for calculating the cost of production of various crops based on data from various independent sources.

Regarding the matter of minimal collection of Cotton Cess, the committee oversaw the ministry to give a full statement as to the reasons for not recovering Cotton Cess before 2016 and post 2016 with details of targets, recoveries, and outstanding arrears and action being taken for recovering the same.

The committee also yearned for a detailed briefing from the ministry regarding ongoing schemes of 2021-2022, funds allocated, funds utilized, the progress of ongoing schemes, and reasons where funds are not being utilized.

The Ministry was also told to clue in the committee in the next meeting regarding a new proposal on behalf of the ministry for the upcoming budget 2022-2023 both in the Public Sector Development Program (PSDP) and Auditor General of Pakistan (AGP).

The issue related to the collection of Cotton Cess by the Pakistan Central Cotton Committee (PCCC) from Pakistan Textile Mills, the committee directed the ministry to give a full statement as to the reasons for not recovering Cotton Cess before 2016 and post 2016 with details of targets, recoveries, outstanding arrears and action took for recovering the same.

The Chairman Committee lamented the declining trend of cotton production in the country and called for an effective research mechanism to stop causing damage to cotton. The secretary, Dr Muhammad Ali Talpur underlined that cotton cess has been recovered from textile mills since 2016, adding that the target for recovery was set at Rs. 600 million but only Rs. 200 million has been recoverable.

And, for the remaining amount the procedure lay down in the “cotton cess act” for recovery of arrears of land revenue will be acted upon. In the current year, Bale production stands at 8 million which was 7 million bales in the last year, and the consumption rate stands at Rs. 50/bale, the secretary ministry of National Food Security and Research stated.

The agenda items related to Pakistan Agriculture Research Council (PARC) were recessed due to the non-presence of Chairman PARC. To the Question regarding the appointment of a new Chairman PARC, the Secretary informed us that the process for a new Chairman PARC has already been initiated and the shortlisted candidates will be interviewed soon by the Minister.

To the Question asked by the Chairman Committee about the appointment of a new Chairman PARC, the ministry informed that the process has already been initiated and the shortlisted candidates will be interviewed soon by the Minister.

Senators Sania Nishtar, Semee Ezdi, Keshoo Bai, Jam Mahtab Hussain Dahar and Muhammad Akram attended the meeting. High officials from the Ministry and its attached departments led by Tariq Bashir Cheema, Minister for National Food Security and Research participated in the meeting.



Get Alerts

Follow ProPakistani to get latest news and updates.


ProPakistani Community

Join the groups below to get latest news and updates.



>