June 21, 2002	Friday	Rabi-us-Sani 9, 1423

KARACHI, June 20: The Committee on Seed Cotton Prices has observed that international cotton prices will be improved next season due to lower production worldwide

These observations were discussed at the second meeting of the committee held here on Thursday at Pakistan Central Cotton Committee (PCCC), Karachi, under the chairmanship of Adviser to the Chief Executive on Food, Agriculture and livestock M. Shafi Niaz.

The committee has been formed at the beginning of the next season on the directives of the President for the assessment of the raw cotton stocks position, possible production next season and the likely impact on cotton market prices and the measures to safeguard the interest of the farming community.

The committee reviewed the current cotton situation focussing upon the production, consumption, imports, exports and the possible end-season stocks as on 1st August 2002.

The thinking was that on account of sizeable production and imports during the current season the ending stocks might be higher, which had been creating fears among the farmers regarding depressed market prices in the beginning of 2002/03 season.

The committee also reviewed the world cotton situation and the market price trends projected for the 2002/03 season and its possible impact on the domestic cotton market during next season.

It was noted that there were possibilities of declining production but rising mill consumption in the world next season thereby creating more demand for raw cotton. This might improve the price situation, which, during the current season, had remained historically low on account of excessive availability of the commodity mainly due to 9.4 per cent increase in the production.

The Committee was informed that the government was fully aware of the problems of the cotton sector particularly the growers. All possible measures would, therefore, be taken to safeguard their interest. With the same spirit the government had recently raised the support price for seed cotton to Rs800 per 40 kg for base grade for next season.

The meeting was attended by Minister for Agriculture, Punjab, Khursheed Zaman Qureshi, Chairman TCP, VP, PCCC, Chairman, APCOM, Secretary Agriculture Department, Sindh, Chairman KCA, Chairman PCGA, senior officials of CBR, Textile Commissioners Organization, PSI, Plant Protection Department and the grower members from the Punjab. —APP