Pakistan is yet to decide about the cotton intervention price for the current season. Meanwhile growers may be deprived of benefits. It was decided to take the provincial governments of Sindh and Punjab on board for the implementation mechanism. Without inputs by provincial governments, the matter may further linger, negatively impacting growers. The intervention price of cotton had been fixed at Rs 3,000 per 40 kg for the fiscal year 2015-16.
As per Indian model of cotton procurement, the government may also procure seed cotton instead of lint cotton on an experimental basis. Cotton price may be fixed in between the import and export parity prices. Lint cotton is exported as well as imported by Pakistan and during this course of business a lot of revenue is spent, which may be avoided through the import of only long staple cotton which is required for fine quality cotton in certain textile sectors.
Pakistan does not give any subsidy on cotton, so growers have to compete with the prices of subsidised cotton. The Trading Corporation of Pakistan is likely to be made bound to procure at least two million cotton bales for this year.
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