ISLAMABAD, Nov 30: A controversy has arisen between the ministries of agriculture and textile over 2.5 million bales of cotton that the latter wanted to import to meet the growing demand of the “expanding” industry Food, Agriculture and Livestock Minister Sikandar Hayat Bosan on Wednesday rejected a recent statement by Textile Minister Mushtaq Ali Cheema that the government would import 2.5 million bales of cotton, saying it had brought down cotton prices and was harming farmers’ interest.
“This statement, which has brought down prices by Rs20 to Rs25 per 40kg of phutti in some areas, has not only harmed the interests of our farmers, but is also against the very spirit of our existing cotton policy. So, I must clarify it,” Mr Bosan said while speaking at a news conference here at his ministry.
He said according to the existing policy, cotton could be freely imported and exported by private parties. As far as the government was concerned, it had nothing to do with the import of cotton, he added.
“I don’t know whether the minister had issued this statement or he was misquoted but no one can change our cotton policy until it is amended by the cabinet. So, there is no question of importing cotton by the government under this policy,” he said.
Textile Minister Mushtaq Ali Cheema had issued a statement a few days ago that the government would import 2.5 million bales of cotton to meet rising domestic demand owing to a shortfall of 2.1 million bales that had been projected for this season compared to the last year.
He said the government had to import 1.5 million bales, despite the 14.6 million bales production because of the growing demand last year.
When contacted, Mr Cheema told Dawn that the government had to import cotton this year because the textile industry was growing after its blanket exemption from all taxes in the budget 2005-06, and it was a matter of supply and demand.
He said the prices of cotton had not decreased after his statement but had rather gone up because of the rising domestic demand.
At the news conference, Mr Bosan said the government had fixed a price of Rs975 per 40-kg phutti and the farmers were getting more than the settled price in many areas, but these prices had been affected after the minister’s statement.
SHORTFALL: The agriculture minister said the government had earlier estimated 12.5 million bales of cotton for the current season. This projection was 2.1 million bales less than the bumper 14.6 million bales production last year. However, he said the Cotton Crop Assessment Committee would meet on December 10 to give a final assessment of the cotton production for this year.
He said the committee would comprise representatives of all stakeholders, including the All Pakistan Textile Mills Association, the Pakistan Cotton and Ginners Association and growers.
He said the cotton production had not exceeded the 10.5-10.7 million bales target over the last five to six years, except the last season. He said there was no need to import cotton because even the estimated production for this year was enough to meet local demands.
In reply to a question, Mr Bosan said the flood in July this year had badly hit 350,000 acres of cotton crop in southern Punjab and kachi areas in Sindh. He said the weather was not lenient this season as temperature had gone up during night times in August, badly affecting the crop.
COMMONWEALTH MEETING: The agriculture minister said he endorsed the stance Prime Minister Shaukat Aziz took at the Commonwealth meeting that rich countries must stop giving subsidies to their farmers in order to create a level-playing field for international trade.
Dear visitor, the comments section is undergoing an overhaul and will return soon.