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Analysis: Whether grower get reasonable
price
By Syed Kaleem Uddin
By the blessing of God we expect a bumper crop this year and
target will be achieved which is 10.7 million bales ,the
quality of cotton is also good ,this happened due to increase
in cultivation area and pest attack is less due to shortfall
of rain.
There is a question whether growers will get fair price or
not, as some news are coming that seed cotton is being sold
lees than govt support price fearing further decrease in price
due to bumper crop.
Over last several years when ever growers got bumper crop in
any commodity like cotton they found themselves in many
difficulties due to marketing system failure.
According to Pakistan cotton ginner’s association report there
is increase of 100% in Sindh with compare to last year till
the end of 15th, September as this report is on fortnightly
basis.
This year more cotton cultivation is recorded because last
year the growers got maximum price of seed cotton up to
Rs1600-1650, there fore cultivation has been recorded even in
rice and sugarcane areas.
Our marketing system is not up to the standard, there is no
guaranteeing that if growers produce better quality and
quantity they will get better price.
The price of cotton always depends upon New York cotton
exchange price, if there will be increase or decrease in New
York cotton exchange price there will be increase or decrease
in our domestic price also.
Due to no premium from spinner to ginner there fore most of
growers and ginners are not producing contamination free
cotton.
Two years back a campaign of producing contamination free
cotton has been launched but when ginner produced quality
cotton they did not get premium which government had announced
for contamination free cotton.
In my opinion spinner should pay premium and provide assurance
to pay better price.
There should be a Marketing system which assure better price
return to grower and ginners even if they produced bumper crop
otherwise govt should provide assurance.
As price is low there for a report is that TCP has purchased
some 2000 bales on Rs 2159, for 37.324 kgs.
It seems that export of cotton would takes place because price
is workable for export.
An indication is that volume of export is much higher as
compare to last year.
The writer is a permanent contributor to Pakissan.com.
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