Govt asked to activate TCP for cotton buying
To save themselves from financial losses, cotton growers have asked the government to activate Trading Corporation of Pakistan to begin buying cotton at support prices.
A support price of Rs8,500 per maund of raw cotton (phutti) was offered by the federal government in March on the advice of the textile industry, which was squeezed last year by poor local crop production due to floods and heavy rains, as well as falling yields per acre and higher international rates.
Before the cotton season began, the measure was announced to entice back farmers abandoning cotton sowing due to low market rates and increasing input costs. Moreover, a seed subsidy of Rs1,000 per acre was also offered.
The policy was successful as cotton cultivation increased to 6.9 million acres from less than 6 million acres last season. However, from June 15, ginning factories began reducing their rates.