ISLAMABAD, April 13: The cabinet on Wednesday approved the intervention price of Rs975 per 40kg of seed cotton (Phutti) for the next financial year. The price is Rs50 higher than that offered last year to farmers. Information Minister Sheikh Ahmad Rashid told newsmen after the cabinet meeting that the production target for the 2005-06 season had been fixed at 15 million bales, 50 per cent higher than for the last year.
The cabinet was informed that the productivity of the crop had increased by 38 per cent, increasing the per acre yield from 18 maunds to 25 maunds.
It decided that the task of enforcing the price would remain with the Trading Corporation.
A committee comprising ministers for commerce, food and agriculture and textile and industry and representative of the private sector would regularly monitor the cotton market price and the procurement operation of the corporation.
The cabinet was told that the production of sunflower seed had increased, resulting in 10 per cent reduction in the import bill of edible oil and saving $100 million of foreign exchange.
It was informed that a 27 per cent increase in the cultivation area of sunflower this year would reduce the country’s dependence on imported edible oil.
The cabinet ratified the Rotterdam Convention on Prior Informed Consent Procedure for certain hazardous chemicals and pesticides in international trade.
The food and agriculture minister informed it that the ban under the convention on 21 pesticides and chemicals would not affect the agriculture sector in the country.
It approved the signing of a memorandum of understanding with the United Kingdom on defence equipment cooperation.
The cabinet approved the ratification of the free trade agreement with Sri Lanka and establishment of a joint economic commission with the Philippines.
It approved initiation of negotiations with Azerbaijan to promote cooperation between the supreme audit institutions of the two countries and the signing of a technical cooperation agreement with Japan.
The cabinet paid tribute to late Pope John Paul II and observed one-minute’s silence as a mark of respect for him.