Analysis: Whether grower get reasonable price

By the blessing of God we expect a bumper crop this year and target will be achieved which is 10.7 million bales ,the quality of cotton is also good ,this happened due to increase in cultivation area and pest attack is less due to shortfall of rain.
There is a question whether growers will get fair price or not, as some news are coming that seed cotton is being sold lees than govt support price fearing further decrease in price due to bumper crop.
Over last several years when ever growers got bumper crop in any commodity like cotton they found themselves in many difficulties due to marketing system failure.
According to Pakistan cotton ginner’s association report there is increase of 100% in Sindh with compare to last year till the end of 15th, September as this report is on fortnightly basis.
This year more cotton cultivation is recorded because last year the growers got maximum price of seed cotton up to Rs1600-1650, there fore cultivation has been recorded even in rice and sugarcane areas.
Our marketing system is not up to the standard, there is no guaranteeing that if growers produce better quality and quantity they will get better price.
The price of cotton always depends upon New York cotton exchange price, if there will be increase or decrease in New York cotton exchange price there will be increase or decrease in our domestic price also.
Due to no premium from spinner to ginner there fore most of growers and ginners are not producing contamination free cotton.
Two years back a campaign of producing contamination free cotton has been launched but when ginner produced quality cotton they did not get premium which government had announced for contamination free cotton.
In my opinion spinner should pay premium and provide assurance to pay better price.
There should be a Marketing system which assure better price return to grower and ginners even if they produced bumper crop otherwise govt should provide assurance.
As price is low there for a report is that TCP has purchased some 2000 bales on Rs 2159, for 37.324 kgs.
It seems that export of cotton would takes place because price is workable for export.
An indication is that volume of export is much higher as compare to last year.

Muhammad Ramzan Rafique
Muhammad Ramzan Rafique

I am from a small town Chichawatni, Sahiwal, Punjab , Pakistan, studied from University of Agriculture Faisalabad, on my mission to explore world I am in Denmark these days..

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