All Pakistan Textile Mills Association (APTMA) has asked for government’s intervention to free market mechanism, as there is a move to procure seed cotton (phutti) equivalent to one million bales at the support price of Rs 3,000 per 40kg.
The association said that the cost of production for cotton growers was very high, as the price of urea has been increased by Rs 150 per bag and diesel prices have jacked up by 45 per cent. It has put cotton farmers into trouble. The Trading Corporation of Pakistan had procured 90,000 cotton seed last year and incurred a loss of one billion rupees.
Industry body questioned the Corporation’s motive behind repeating the same mistake this year when last year’s procurement is still lying with it. The country’s exports during the outgoing fiscal dropped by 17 per cent and to benefit small growers, it said that the government must procure total production of 14 million bales and supply it to the textile industry at the international price.
Rising production costs are also negatively affecting the cotton farmers, like the textile industry players. The government can assist them by reducing cost of inputs by providing a direct support on electricity and fertilizer.
www.aptma.org.pk
