The government has not yet accepted farmers’ demand of setting a minimum support price, as new cotton has arrived in the market. This may result in losses to growers for yet another year. Since the beginning of August there have been new stocks in the market and prices are declining compared to last year. Last year, the price of cotton seed (Phutti) was in the range of Rs 2,500 to Rs 2,800 per maund (40 kg), which depended on the quality. This year, the new crop is being sold in a price range of Rs 2,000 to Rs 2,300 per maund. This is at least 20 per cent less than 2014.

A minimum support price of cotton is being demanded by the farming community. This is aimed at saving them from potential losses. However, officials say the Ministry of National Food Security and Research has not taken any decision on the issue. The international market is also slowing down due to unconsumed stocks of previous year, say cotton traders, which is also adversely affecting price new crop.

Farmers are not getting fair return, say cotton growers, and the situation is creating unrest among cotton growers. Also, China, which is the main buyer of Pakistan yarn, is going through an economic meltdown, which is gravely affecting Pakistan. Besides, the spinning industry is facing heavy taxation.