With two forces colliding head first, to resolve the conflicts arisen between the rural agriculturists and urban industrialists, a meeting of the the Economic Coordination Committee (ECC) were arranged, headed by Minister for Finance & Revenue Shaukat Tarin. As the finance minister approved 11 supplementary grants worth Rs20 billion a day ahead of budget approval, the cabinet’s decision for intervention price for Cotton 2021-22 Crop were also halted for 14 days so that sowing can be completed. According to Mr Dawood, his analysis proposes that Rs5,000 per 40-kg intervention price would make Pakistani cotton expensive when compared with the international market.
Based on data and charts, the ministry reported that while “comparing intervention period with that of non-intervention period, it reveals that cotton area and yield has increased during TCP intervention period — 1998-2010 — and decreased during the period without intervention — 2011-2020”.
To sum it up, Lower cotton production is also hampering the industry’s growth, textile exports and elevating import bill of edible oil, raw cotton, livestock meal and causing economic insecurity in rural areas. The summary sought procurement of 1-2m lint cotton at pre-determined rate based on Rs5,000 per 40-kg of seed cotton by the Trading Corporation of Pakistan through the Pakistan Cotton Standard Institute.
