Cotton Crop Intervention Policy Expires Without Making Any Interventions
The 'Cotton Crop Intervention Policy' expired without making any intervention whereas the prices of cotton crop remained stable above the bench mark of Rs 5,000 per 40 kilogram
ISLAMABAD, (UrduPoint / Pakistan Point News - 12th Jan, 2022 ) :The 'Cotton Crop Intervention Policy' expired without making any intervention whereas the prices of cotton crop remained stable above the bench mark of Rs 5,000 per 40 kilogram.
The Policy was meant to intervene if the prices of 40 kilogram cotton slipped down from Rs5,000 per 40 kg, official sources said adding that the the purpose of the policy was to ensure minimum support price of the crop and encourage growers to bring more area under cotton cultivation.
Owing to the policy, the prices of the commodity remained stable in local markets across the country throughout the season.
The stability in local cotton market was attributed with the vigilance of Cotton Crop Intervention Committee, which was constituted to ensure proper monitoring measures to maintain stability in local cotton markets, besides ensuring better return to farmers for their produces as well as protecting them from exploitation.
An official in the Ministry of National food Security and Research told APP that the Federal cabinet in its meeting had approved the proposal of Ministry of National Food Security for setting the intervention price of cotton at Rs5,000 per 40 kg.
The government has decided that if prices fell below that level, the intervention policy would be activated.
The cotton prices during current season observed stability in local as well as international markets, he said adding that due to increase trend of the commodity in international market, prices of crop remained stable in local markets as its never touched the minimum price bench mark set at Rs5,000 per 40 kg.
He informed that due to proper rate of return and batter crop management practices adopted by the local farming community, cotton production had witnessed about 30% growth despite that the area under crop sowing witnessed about 7% decline during current season.
He said that according to the official figures, local output of cotton crop was estimated at 9 million bales, adding that Pakistan Cotton Ginners Association had reported that over 7.2 million bales have arrived to local ginning mills as against the arrival of same period last year, which was a positive sign for the revival of cotton crop in the country.
He said that government was also determined to maintain the momentum as promotion and development of this vital crop would have vast impact on economic development of the country as a large portion of local population was directly or indirectly associated with this crop of vital importance.