The Pakistan Cotton Forum (PCF) Chairman Seth Muhammad Akbar has rejected any intervention to free market mechanism in the cotton economy. He said that cotton farmers are major beneficiaries of the free market mechanism, as return on agriculture produce has increased manifold against all previous records and around Rs 240 billion have directly been transferred the cotton growers by the industry, as a result of the attractive support price and increase in commodity prices globally.
On top of all, he said, availability of free market mechanism has played a vital role in flourishing the rural economy. He said that farmers represent 70 percent of the population and the present government has won its hearts by protecting lucrative prices for agriculture products.
Seth Akber said that all stakeholders at the platform of PCF including Farmers Associate Pakistan (FAP), Pakistan Cotton Ginners Association (PCGA), Karachi Cotton Association (KCA) and All Pakistan Textile Mills Association (APTMA) have a strong conviction that any intervention to the fee market mechanism would be detrimental to the growth of rural economy in Pakistan. He said the target of 15 million bales, set for the new crop season, is likely to be achieved as farmers are enthusiastic to grow more cotton this year.
The PCF chairman said that chances of an increase in cotton crop last year are high, but unexpected floods hit the rural economy hard. He added that good days are likely to return to the rural economy and cotton production is likely to break records this year. He also urged the government to ensure all inputs to cotton growers including fertilisers, seed and water to achieve broader national economic objectives.
Seth Akber lamented that vested interest elements in the ancillary industry are adhering to their hidden agendas by pushing the government to distort free market mechanism and banning exports of cotton trade. He said that ancillary industry should act prudently, as abundant cotton would be available ahead to convert it into value added products.
