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Monday March 20, 2023

Govt fixes cotton intervention price at Rs8,500 per 40kg

Move aims to bring stability to domestic market and assure a fair return to farmers

By APP
March 15, 2023
The ECC meeting on March 14, 2023. — Twitter/@FinMinistryPak
The ECC meeting on March 14, 2023. — Twitter/@FinMinistryPak

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet fixed the cotton (Phutti) intervention price (CIP) at Rs 8,500 per 40kg on Tuesday, citing the need to revive cotton production, bring stability to the domestic market and assure a fair return to farmers in the country.

The ECC meeting was chaired by Minister for Finance and Revenue Senator Mohammad Ishaq Dar

The meeting was also attended by Minister for Industries and Production Syed Murtaza Mahmud, Minister for Commerce Syed Naveed Qamar, former prime minister Shahid Khaqan Abbasi, SAPM on Finance Tariq Bajwa, SAPM on Revenue Tariq Mehmood Pasha, SAPM on Government Effectiveness Dr Muhammad Jehanzeb Khan, federal secretaries and other senior officers.

Taking to Twitter, the finance ministry shared: “Meeting of the ECC, chaired by Finance Minister Senator Mohammad Ishaq Dar, approved Cotton (Phutti) Intervention Price for the current sowing season at Rs8500/40kg. Extension in time limit in shipment period of sugar export from 45 days to 60 days from quota allocation.”

“Also approved Rs10 Billion for NDMA for providing relief goods to affectees of an earthquake in Turkiye and Syria!”

The Ministry of National Food Security and Research submitted a summary on cotton Intervention Price (CIP) for the 2023-24 crop and said that announcing CIP at this time, ahead of the main sowing season, will help growers decide about the area and the investment in cotton crops. The move is expected to enhance yield and area by 10-15%.

The ECC directed the Ministry of National Food Security and Research to constitute the Cotton Price Review Committee (CPRC) with a mandate to review market prices. The ECC further directed the ministry to proactively involve the cotton industry.

The ECC considered a summary of the Ministry of Commerce on an extension in the shipment period of sugar export and, following a detailed discussion, allowed an extension from 45 to 60 days in the time limit for the shipment of sugar from the date of quota allocation.

The National Disaster Management Authority (NDMA) submitted a summary on financial requirements for the NDMA execution plan regarding Pakistan’s assistance for Turkey and Syria earthquake earlier this year. The meeting participants were informed that the devastating earthquake caused massive causalities in Turkey and Syria.

To support the brotherly countries in their difficult time, the NDMA was directed to maximise and extend full support from February 6. Considering timely help and support to brothers and sisters in Turkey and Syria, the ECC approved the immediate allocation of Rs10 billion to NDMA for the procurement and transport of the goods to affected areas in the two countries.

The Ministry of Energy (Petroleum Division) tabled a summary on the liquidity requirement of Pakistan State Oil (PSO) for the import of Petroleum products in the country and argued that PSO is engaged in the import of Liquefied Natural Gas (LNG) in the country to meet the energy requirement in terms of LNG and petroleum products.

PSO is importing 8-9 LNG cargos per month; whereas, as per the contracts with LNG suppliers, PSO is obliged to clear the invoices within the time frame. In order to enable PSO to remain afloat in its payment obligations to LNG suppliers and to continue the LNG supply chain, the ECC allowed a sovereign guarantee in favour of SNGPL for commercial borrowing of Rs50 billion on an immediate basis.