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ECC to discuss cotton policy next week

AMER SIAL

ISLAMABAD: The announcement of the new cotton policy and issue price of wheat has been delayed for another week, as the meeting of the recommending authority, Economic Coordination Committee (ECC) of the Cabinet, has been delayed for another week due to the visit of US President Bill Clinton.

Official sources said that ECC is also likely to approve the support price for sugarcane and rice for the next Kharif crop in its coming meeting.

Cotton policy was expected to be announced on March 21 but due to the visit of the US President the weekly meeting of ECC which was due to be held on Tuesday, has been put off till next week, sources said.

The ministry of food and agriculture has already forwarded its recommendations on the issue price of wheat and on the support prices of cotton, sugarcane and rice to the cabinet division.

Sindh government is awaiting reply from the federal government on the issue price of wheat as the provincial food department is in a fix as it is procuring wheat at Rs 300 from the growers while the issue price of wheat to millers is Rs 260 and this, in turn, has resulted in hoarding of the commodity.

Minfal has given three recommendations first scenario deals with if 20 percent subsidy on wheat is lifted; second, if 50 percent subsidy is lifted and, lastly, if 100 percent subsidy on wheat is lifted.

The support prices of cotton, sugarcane and rice are to be given early so as to induce farmers to increase the production of these exportable Kharif crops. Sources gave the reason for announcing the support prices of these commodities early, as the growers had decreased the acreage of sugarcane this fiscal year due to low payments for their produce by the millers and they might further decrease the acreage of cotton and sugarcane if no incentives are given to them.

Cotton and rice are the most important foreign exchange earning commodities whereas a good sugarcane production helps save a lot of valuable foreign exchange of the country.