COTTON prices continue to decline in Sindh while the picking of the crop would end latest by early next month. Farmers get Rs2,400 per 40kg whether they sell phutti to middlemen or ginners directly.

It is only for a brief period lat month when the prices ranged between Rs2,600 to Rs2,800 in lower Sindh region due to early picking and peaked at Rs3,200.

A major chunk of crop is said to have been sold, and by mid October the remainder will be cleared by peasants in upper Sindh region which witnesses late sowing.

Farmers prefer terminating early sown cotton crop to free land for wheat cultivation for improved productivity. Timely wheat sowing — done by mid November — results in better yields.

Farmers attribute the decline in cotton output to lack of government’s interest in ensuring price

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A cotton producer Mahmood Nawaz Shah attributes the decline in cotton output to lack of government’s interest in ensuring price stability. The government also does not curb unjustified weight deductions by ginners, or ensure availability of quality seed. It has also failed to check spurious pesticides’ sale. If these factors could be checked, farmers might be better off with whatever price they get.

Former Pakistan Cotton Ginners Association (PCGA) chairman Mahesh Kumar believes that international prices of cotton are main cause of fall in domestic prices. “The price of phutti ranged between Rs2,400 to Rs2,500 per maund in September”, he said.

According to him, cotton seed price has dropped from Rs1,800 to Rs1,000 per maund, and this has affected prices of phutti. He points out that China being the biggest buyer has reduced its quota of cotton import to just 4m bales against its past imports of 25 to 26m bales.

The growers argue that they would take interest in cotton or any other crop as long as it is profitable and once they lose the price charm they would switch over to alternative crops. Agriculture statistics relating to cotton sowing and production also indicate that growers prefer high delta crops over cotton.

Except for 2009-10 when cotton sowing target fell short of a nominal 2.35pc and Sindh produced 4.2m bales, but since then the province miserably failed to meet its sowing and production targets. During the current season, cotton sowing target of 650,000 hectares could not be achieved and the cultivated area fell short of b 8pc.

The Federal Cotton Commissioner Dr Khalid Abdullah subscribes to cotton producers’ view that prices are really depressing and the situation is alarming as not only in Sindh but country wide targets of cotton sowing are not being me. The cultivation ranges between 2.6m to 2.8m hectares. The summary moved by textile ministry, seeking approval for procuring 1m bales, is pending with government.

The cotton commissioner, added Mahesh Kumar, had agreed that phutti could be procured directly from growers but the proposal has not yet been finalised. The idea behind this proposal was to pay growers directly. This mechanism is yet to be worked out and Dr Abdullah confirmed that it is being discussed with concerned ministry to avoid hitches when the scheme is given effect in the provinces.

Published in Dawn, Economic & Business, October 13th, 2014