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Pakistan: Govt assures NA: No reduction in cotton prices

2004-8-27

The government informed the National Assembly (NA) that there would be no reduction in the price of cotton at any cost as it benefited cotton farmers.

Food and Agriculture Minister Sardar Yar Mohammed Rind, Commerce Minister Akhtar Khan and Parliamentary Agriculture Secretary Rajab Baloch said that higher prices of cotton were likely to benefit farmers. They said that farmers earned an additional Rs 60 billion due to the increase in the support price of cotton, a six percent rise from last year.

A calling notice was issued criticising the government failure to purchase cotton and pay cotton farmers. The notice was issued by assembly members Syed Qurban Ali Shah, Syed Zafar Ali Shah, Pir Aftab Shah Jilani, Ishaq Khakwani and Rashid Akbar Khan.

Sardar Rind promised the assembly that the market price of cotton would be stabilised at any cost. He said that the Trading Corporation of Pakistan (TCP) would purchase cotton beyond its capacity if need be. Baloch said that there was no need for concern since only 20 to 25 percent of the cotton produce had been brought into the market.

Rind said that the government had allotted funds to the TCP so it could intervene if prices dropped below Rs 925 per 40 kg. Currently arrangements have been made for the procurement of 100,000 cotton bales but “we are ready to buy 0.5 million to one million bales if required,” he said. Ten purchasing centres have been set up in Sindh for this purpose.
 
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