KARACHI, April 17: The government has increased phutti (seed cotton) prices for 2006-07 crop to Rs1,025 per 40 kg from Rs975 fixed for the last year season.

The decision was taken in a recent meeting of the Economic Coordination Committee (ECC), which was also attended by Minister for Food, Agriculture and Livestock (Minfal) Sikandar Hayat Khan Bosan.

The decision, analysts believe, reflects the government’s commitment to safeguard the interests of the cotton growers so that they continue to produce more cotton to meet the ever-rising demand of the textile industry.

It was also decided that the Trading Corporation of Pakistan (TCP) would continue to play its role of ‘stabilizer’ of cotton prices and would intervene whenever needed to ensure that the prices do not fall below the government-fixed price of phutti.

Besides, the TCP will also enforce premium and discount system for various grades and staples in order to encourage production of clean and contamination-free cotton.

A senior ministry official Dr Ibad Badar Siddiqui told Dawn that an inter-ministerial committee comprising federal ministers for Commerce, Minfal, Industries and Production, Textile Industry and representatives of private sector stakeholders would constantly monitor the cotton production and the price situation.

The Federal Committee on Agriculture (FCA) has already set cotton production target for next season (2006-07) at 13.8 million bales to be achieved from an area of 3.25 million hectares as against 13 million bales production this season.

The Minfal in consultation with relevant stakeholders has also finalised a strategy to regulate release of genetically modified (GM) plant varieties, including Bt cotton.

For this purpose the ministry of Environment has also notified Bio-safety Rules, 2005, and Bio-safety guidelines, 2005, and all GM plant varieties intended for release will be required to get the environment clearance prior to entering into normal testing and release procedures under Seed Act, 1976, Dr Ibad added.

Presently, he said, work was under progress to develop local variety of Bt cotton. However, no Bt cotton variety had yet been cleared by the relevant authorities for commercial cultivation and it was decided that FSC&RD jointly with Pakistan Environmental Protection Agency (EPA) would take necessary measures to check un-authorised Bt cotton and the provincial governments would also take action under Cotton Control Ordinance in this respect, he maintained.

Dr Ibad advised the cotton growers to use only certified seeds of well-adapted and approved cotton varieties.