The National Assembly Standing Committee on Textile Industry has already endorsed the proposal and directed the ministry for presenting a proper framework which would be discussed at the highest level. The ministry has prepared the framework which would be presented at the highest level after completion of consultation with all stakeholders.
Textile Ministry maintained that there has been witnessed a tendency of lower cotton prices at the time of harvest of cotton crop which badly affect, especially, the livelihood for small farmers. Moreover, the small farmers (90%) have neither the capacity to stock seed cotton for longer period and sell when prices are high.
The immediate relief in shape of support price is required for safeguarding livelihood for the farmers. The government may consider announcing support price for seed cotton (phutti) at the rate of Rs 3,000 per 40kg through Trading Corporation of Pakistan (TCP). The ministry has also proposed devising a mechanism in collaboration with the Pakistan Cotton Ginners Association (PCGA) and various farmers'' organisations for disbursing cash payments and providing direct support to the designated agency which will buy seed cotton at Rs 3,000 per 40kg from the farmers.
The difference between prevailing market prices of seed cotton and the support price (Rs 3,000) will be directly paid to the ginners or designated agents. For this purpose, proper record of farmers (name, ID card number, address and contact number) will be maintained and counterchecked by the Ministry of Textile Industry for maintaining transparency in disbursing cash payments.
Moreover, the direct cash support can also be provided to the farmers on the pattern of last year during 2015-16 in which the government disbursed Rs 40 billion as direct cash support to the farmers involving agriculture extension department, land revenue officers and local district governments. Database of small farmers is already in place with agriculture extension department and land revenue officers which could be utilised for the purpose.
The ministry has further proposed complete ban on import of cotton at the time of arrival/harvest of the crop. Cotton-picking period is very crucial for setting the prices of cotton. The industry continues to import even at the time of harvest and arrival of new crop which suppress the cotton prices resultantly posing losses to the farmers. It is, therefore, proposed that there should be imposed complete ban on import of raw cotton and yarn at the time of harvest of cotton crop and arrival of new crop from the month of September to December. This will help stabilise the domestic cotton prices.
Textile Ministry maintained that cotton crop badly suffered due to heavy and prolonged rains, high temperatures (sunscald/leaf burning) and onslaught of insect pests and diseases. Small farmers are the main victim for such vagaries. Small farmers having less than 5 acres of land have limited access to agricultural credit and other government schemes. The government may consider launching of specified Cotton Crop Insurance Scheme through National Bank, State Bank, Zarai Taraqiati Bank, commercial banks and post offices.
The inspection of cotton crop may be made with the assistance of agriculture extension and land revenue officers of the specific area and estimate of cotton crop losses due to insect pests/disease, environmental or other unavoidable elements and payment may be made accordingly.
The Punjab government has recently announced supply of free of cost cotton seed to the cotton farmers in the province. The same activity may also be initiated in other provinces. Pakistan Central Cotton Committee (PCCC) may be allowed to provide free of cost delinted seed packed in 10kg each to the contracted farmers in Khyber Pakhtunkhwa and Balochistan provinces through its stations (DI Khan, Sibbi, Lasbella). Moreover, the PCCC can also involve Seed Association of Pakistan (SAP), and other agencies for supporting this purpose. The PCCC can easily provide seed for at least 20,000 acres at 10kg each from its own sources, the ministry has proposed.
Copyright Business Recorder, 2017