APTMA demands cotton support price at Rs8,000/maund

ISLAMABAD: All Pakistan Textile Mills Association (APTMA) on Tuesday asked the government to fix cotton support price at Rs8,000/maund to help farmers increase cotton production.

APTMA said the suggested support price was based on an international New York future cotton price of Grade-III of $ 1.25/lb. In line with international price of December 2022 and was well below the currently prevailing market price of $1.45/lb, it added.

“An increase in cotton production will have a direct impact of $1 billion per one million bales and a seven times multiplier impact on the fiscal flows in the economy.”

Overall cotton area in this decade has declined by 33 percent to 1.9 million hectares from 2.9 million hectares. Almost 1.5 million farmers grow cotton out of which 75 percent is grown in Punjab while the rest is grown in Sindh. Cotton area in Punjab has decreased by 50 percent to 1.28 million hectares in 2022 from 2.53 million hectares in 2012.

“Cotton yields have fallen by 26 percent to 652kgs/hectare from 880kgs/hectare over last 10 years, while in Punjab the decline has been more pronounced.”

The productivity had fallen by 36 percent to 520kgs per hectares in 2022 from 814kgs per hectares in 2012, it stated.

APTMA said cotton had lost one million hectares during the last decade, and if the area reverted to cotton, the country would produce an extra 5 million bales, it envisaged. It would add 1.523 percent to GDP, saving the country $5 billion directly, it added.

“Wheat is being harvested in Punjab at present and the cotton sowing will commence within next few days and this window for capturing the maximum area for cotton should not be lost or delayed.”