Farmers and cotton growers have asked the government to protect them and intervene to stabilise fluctuating lint prices or else the farmers would suffer losses worth Rs85 billion.
While talking to Pakistan Today, they said that Trading Corporation of Pakistan should start buying lint, as this is the only way of stabilising cotton prices. They said that the prices of cotton in the world are still high but the farmers are not given a good price. The farmers said that inputs have shown a sharp increase in the last two years and it is not feasible for them to sell the produce at this price. They said that globally cotton production is expected to decrease but even then the farmers of Pakistan have put all efforts to increase production.
Farmers Association Pakistan (FAP) President Tariq Bucha said that months of August and September are very crucial for the cotton crop to set its fruit. During these months farmers need to be vigilant about pests, which may affect the crop badly and hence can reduce production. He said that they must complete fertiliser application by the month of August or maximum by early September. He said 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. He said recently an emergency meeting of FAP was also held and it was observed that the government should come up with some effective measures to countercheck these problems, as it may have a deep and adverse impact on the already dwindling economy of Pakistan. He said the government should immediately direct the TCP to enter the market and start buying lint at the price of Rs7,000 per 37.324 kg till the market stabilises. Bucha said that the cotton crop is in its middle stage during which farmers have to be highly motivated; cotton prices below 2800 per 40kg are already frustrating cotton farmers as it is not even covering 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.
He said if the government will not take these steps then FAP warns the government that not only farmers will suffer badly but at the same time Pakistan may loose 1.5 billion dollar from its foreign reserves to import the shortfall of 2.3 million bales. Agri Forum Chairman Ibrahim Mughal said that when lint price in international market was 77 cent per pound then in the local market it was sold for Rs3,100 per maund but at present the price in international market is 101 cent per pound but still the farmers are getting Rs2,200/maund. He said India and China could not achieve cotton sowing target due to certain reasons and it is forecasted that the cotton production in the world would decrease. “Our farmers have put all their efforts to achieve the target but in return they are not given any benefits,” Mughal said adding if the government does not pay any attention to the issue then the farmers would loose at least Rs85 billion. He said the cost of inputs has increased by 70 per cent but still there is no stability in the price of cotton. He asked the government to intervene and through TCP start buying lint. “Only in this way the market for cotton could be stabilized and the farmers could be protected,” he concluded.
Low cotton prices exacerbating farmers misery
