March 9, 2006	Thursday	Safar 8, 1427

KARACHI, March 8: Food, Agriculture and Livestock Minister Skinder Hayat Bosan on Wednesday said that his ministry was working on a ‘cotton vision’ and it would be finalized after taking input from all stakeholders.

Speaking to All Pakistan Textile Mills Association (Aptma) members, the minister invited suggestions from textile tycoons.

Referring to a point raised by Aptma (SB Zone) Chairman Mushtaq A. Vohra, the minister said there was no problem in increasing cotton production to meet the rising consumption of textile industry. “The problem is when there is higher cotton production, the price becomes depressed and when the crop is short, growers fetch a better price. Therefore, it is necessary that there should be a ‘win-win’ situation for all the stakeholders of cotton trade,” he added.

Citing an example, Mr Bosan said the on-going sugar crisis was because of a large sugarcane crop produced last year. “It damaged growers’ interest because millers taking benefit of the demand and supply situation paid less to the extent of Rs25-32 per 40kg to the growers against the government’s fixed price of Rs40,” he said, adding that as a result of this, the area under sugarcane cultivation this year declined by 11 per cent and production fell by 13 per cent.

Mr Bosan said similarly when the country last year produced a bumper cotton crop of 14.6 million bales, prices remained depressed and the growers got Rs850 per 40kg for phutti, whereas this year with a short crop at around 13 million bales, prices went up to Rs1,150 per 40kg of phutti.

In reply to a query, the minister said contamination-free cotton could only be produced if millers or spinners paid a premium price for such cotton. Mr Bosan observed that the industry itself was not ready to get clean cotton. “If they want to ensure that better quality cotton is produced, they will have to pay a better price.”

The minister asked the Aptma members to give their suggestions and input for the preparation of ‘cotton vision’ so that a ‘win-win’ situation for all the stakeholders was ensured.

He pointed out that the government was striving hard to protect the interest of small and medium sized growers who constituted 82 per cent of the cotton trade. The minister asked Aptma to guide the government as to how to give subsidy to cotton growers directly without involving a middleman or any government agency. He said the subsidy amount could reach the growers without the involvement of any agency or middleman.

Aptma member Mian Mohammad Ahmed while defending the spinners said that prices of cotton in the domestic market were directly linked to world market rates and the industry could do little to pay price of its choice. He said 95 per cent of cotton produced in the country was exported in different shapes like yarn, fabric and finished goods and very small quantity was left for the domestic market.

He said the industry needed a competitive price for its raw material and input costs in order to sell its products in the world market that had become tough and free under the WTO quota-free regime.

Mr Ahmed said that in order to meet shortfall, the industry imported 1.8 million bales last year and 2.2 million bales this year. “It is necessary that domestic production should be increased to 15 million bales in the short-term and 20 million bales in the long-term to meet the rising demand of the local industry.

Former Aptma chairmen Anwar Tata, Waqar Mannoo and Major (retd) Mustejab also discussed issues related to quality and contamination-free cotton.

They criticized the government for allowing the TCP to intervene in the cotton market to protect growers’ interest. They say that only a free market can ensure better price for the growers.