Cotton growers suffer Rs 57.6 billion loss:higher input cost, lower prices of produce

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Economic Updates - Pak Major Financial News

Former speaker National Assembly Syed Fakhar Imam on Tuesday said that the cotton growers had suffered Rs 57.6 billion loss as they were paid Rs 400 less than the rate of phutti (seed cotton).

In a press statement issued here, he said that the growers were facing great difficulty because of higher cost of inputs and lower prices of their produce.

Imam said that the huge loss to the agricultural and rural community was likely to be a disincentive to the cotton growers and may result in a serious decline in cotton sowing and inputs utilisation next year.

He demanded of the Competition Commission of Pakistan to probe into the matter as the monopoly and caterlisation of the market caused this massive damage to the grower."At the same time it has delivered huge gains to the spinners, traders and ginners," he added.

Referring to other crops, he said that the growers of maize and potato were also faced with the same situation while marketing their products.

"Some farmers are not even recovering their cost of production," he lamented.

He pointed out that the sale of tractors and other agricultural tools observed a massive slump because of imposition of 17 percent GST.He urged the government to immediately review and revise its policies, as it was the only way to improve the economic condition of the rural community.

"Similarly, the government should review the price structure of inputs such as fertiliser, diesel and electricity charges for agricultural purpose," he further suggested.

Courtesy: Business Recorder

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