LAHORE, Aug 8: The Farmers Associates Pakistan (FAP) on Monday sought government intervention to stabilise fluctuating phutti prices to safeguard the cotton growers of the country.

In a press statement, the FAP has shown its deep concern at the current cotton scenario in which black market of urea fertiliser along with extreme volatility in cotton prices is demotivating cotton farmers.

The cotton crop is in the mid-season during which farmers have to be highly motivated to lead the crop to maturity. But phutti prices already dropped below Rs2,800 per 40kg, are frustrating farmers as they do not cover even their cost of production. The non-availability or very high prices of urea is discouraging them to use it in the required amount which may lead to a situation where Pakistan may miss the estimated target of 15 million bales.

FAP President Tariq Bucha says August and September are very crucial for the cotton crop. During these months farmers need to be vigilant about the pest, which may affect the crop badly and hence can reduce the production, and must complete fertiliser application by the month of August or maximum by early September, he says.

According to Mr Bucha, this year early cotton sowing has increased as compared to last year which has led to early arrival of cotton in the market. This unusual phenomenon has caused unprecedented fluctuation in the cotton market as it has resulted in artificial supply and demand gap. “These factors can affect cotton production in current year and we think if the government does not come up with some effective measures to address these problems, it may have a deep and adverse impact on already dwindling Pakistan's economy.”

The FAP warns the government that if this situation persists not only farmers will suffer badly but Pakistan may lose $1.5 billion from its foreign reserves to import the shortfall of 2.3 million bales.

The FAP president says the government should immediately direct the Trading Corporation of Pakistan to enter the market and start buying lint at the price of Rs7,000 per 37.324 kilo till the market stabilises.