Cotton growers benefit from open trade policy

STAFF REPORT LAHORE: Pakistani cotton growers have benefitted from the open trade policy of the government that enabled them to obtain import parity price from the industry by earning additional Rs150 billion, as compared to the last year, while Indian farmers suffered due to restrictions on cotton export.

“The government has pursued the free market policy, despite the fact that the country produces three million bales less than industries annual demand of over 15 million bales,” said Pakistan Cotton Forum Chairman Seth Muhammad Akber while commenting on the government policy on cotton.

He said because of this policy the industry could not exploit the farmers.

According to All Pakistan Textile Mills Association (APTMA) Chairman Gohar Ejaz, spinners have wholeheartedly favoured free trade of cotton.

“This year, we offered farmers the rate that kept the exporters at bay.”

Only four percent cotton out of over 11 million bales production could be exported this year, he said, adding that APTMA did not ask for any restrictions on cotton trade even when the government imposed restrictions on yarn exports.

Despite huge global demand, only three million bales could be exported due to various hurdles created by the Indian authorities, he said.

http://www.technologytimes.pk/mag/2011/jan11/issue04/cotton_growers_benefit_from.php