Cotton growers in Pakistan are urging the government to step in and activate the Trading Corporation of Pakistan (TCP) to purchase cotton at the minimum support price (MSP) as market prices have fallen significantly, dipping as low as Rs. 2,000 below the MSP of Rs. 8,500 in Punjab and Sindh. The MSP was announced by the Federal Government in March, accompanied by a subsidy on cotton seeds, in an effort to encourage cultivation after devastating floods had caused heavy losses to both farmers and the industry.
Despite the government’s measures to boost cotton production, prices have been steadily declining over the past three weeks, much to the dismay of growers. The ginning industry, responsible for processing cotton, has pointed fingers at high taxes imposed on Binola (Dried Cotton Seeds) as well as notices sent to mills that surpass the market value of the factories themselves.
Some members of the trading community argue that the current decline in prices can be attributed to high cotton production this year. However, farmers continue to look to the government for support and stability in the market. They are calling for direct intervention or for the TCP to purchase cotton at the MSP, emphasizing the need to safeguard their interests in the face of a volatile market.
The situation highlights the challenges faced by cotton growers in Pakistan, who strive to make a livelihood from their crops. The government’s role in ensuring fair prices and protecting farmers’ incomes is crucial for sustaining the cotton industry and supporting the farming community. Immediate action is needed to address the falling prices and restore stability to the cotton market, safeguarding the interests of cotton growers across the country.