ISLAMABAD: Chair­man of the Senate Standing Committee on National Food Security and Research Syed Muzaffar Hussain Shah has expressed deep concern over the delay on part of the government to announce the minimum support price for the cotton production this year.

Talking to Dawn on Sunday, Senator Shah said the government should announce the minimum support price at the earliest.

The meeting of the committee held earlier this week has already recommended fixing of minimum support price at Rs8,500 per 40kg. The economic coordination committee of the cabinet is mandated to fix the support price.

Senator Shah feared that delay in announcing the support price may discourage cotton growers to switch over to other crops particularly sugarcane, as the cotton is now being sold for as low as between Rs6,500 and Rs7,000 per 40kg.

The national food security ministry has moved a summary to the government to allow the Trading Corporation of Pakistan (TCP) to buy cotton from growers to stabilise the falling prices.

However, Minister for National Food Security Tariq Bashir Cheema informed the committee that the State Bank of Pakistan (SBP) is yet to release funds to TCP to buy cotton.

Senator Shah requested the government to expedite the release of funds by the SBP to TCP. The production of cotton in Sindh was very encouraging, though the production in Punjab was likely to be affected by floods, he said.

The Punjab government would carry out an assessment of the damage by flood, he said.

The committee expre­ssed concern over the non-payment of salaries to the staff of Pakistan Central Cotton Committee (PCCC), and sought a report from the ministry for non-recovery of cotton cess from textile mills. The chairman asked the government to expedite the collection of cotton cess and arrange payment of salaries to the staff of PCCC.

Published in Dawn, July 31st, 2023