ISLAMABAD, Aug 7: Pakistan may have to import raw cotton again this year due to 8.9 per cent fall in cotton sowing area this year, as compared to 2001-02.

The latest figures received by the Ministry of Food, Agriculture & Livestock (Minfal) from the provinces indicated that the total area brought under cotton cultivation was 26,35,100 hectares as against 28,93,000 hectares dedicated to cotton in 2001-02.

The market has already responded to the likely shortfall in availability of cotton as evident from the current rates of phutti. Whereas its price had not been allowed to rise above Rs750 per 40 kg last year, this year the prices range between Rs915 to Rs925.

The low prices paid to farmers coupled with late availability of irrigation water contributed to a steep 11 per cent drop in cotton area in Punjab (around 84 per cent of the total area of Pakistan brought under this cash crop), experts here told Dawn.

Referring to the clamour raised by Aptma and KCA, they said it was a stock-in-trade of the middlemen and spinners that keep the prices of cotton low irrespective of their adverse effect on the producers. Hence their restlessness about the possibility of cotton imports being subjected to regulatory duty.

Nevertheless, the government has already fixed the minimum price of phutti as Rs800 per 40 kg and designated the Trading Corporation of Pakistan, the second buyer, to purchase phutti in the event of its prices dropping below it.

A senior Minfal official stated, however, that no decision had been taken as yet about imposing any such levy. Any such measure would be part of a broad-based cotton policy that would address all the relevant issues.

In fact, Minfal had scheduled a meeting today (Wednesday) in this connection. It had, however, to be postponed because of cabinet meeting. The meeting on cotton was to be attended, besides the Governor of Punjab, by Federal Ministers of Minfal and Commerce, provincial ministers, agriculture experts, KCA, Aptma, PCGA as well as the growers. It is now likely to be held next week.

The agenda of the meeting includes a long-term package of policies to rid the cotton affairs of various weaknesses, to identify the gaps still persisting in cotton production, processing and trading and remove these.

In this connection, the Minfal has already held meetings with representatives of provincial governments on July 27 and July 31.

It is envisaged under the plan to amend cotton control acts of the provincial governments for enforcement of quality control.

Explaining salient features of the proposed legislation, Cotton Commissioner Dr Qadir Bux Baluch said at present the contamination of lint ranged between 18 to 19 grams per cotton bale. Last year, Minfal conducted a successful experiment in Rahim Yar Khan and as a result, the contamination was reduced to 5 grams.

Under the experiment, the incentives were given to farmers in the shape of additional payment of Rs220 per 40 kg of lint for zero contamination. The farmers who reduced it to 2.5 per cent were paid Rs70 per 40 kg in addition to the normal rate.

The international standard, however, required that contamination be limited to 2.5 grams per bale.

Another objective of the proposed new policy would be to reduce the moisture content in cotton from the present to 12-13 per cent to 8-9 per cent, he said.

The meeting would also review the system of Research and Development relating to cotton in the country and consider means to improve it for raising productivity of cotton, improving its quality, etc.