ISLAMABAD

The National Assembly Standing Committee on Textiles on Wednesday unanimously agreed to fix the minimum intervention price of cotton lint and seed at Rs. 3000 per 40 kilograme for financial year 2015-16.

The price was finalised on the recommendations of API, who stated that after considering 35 cost parameters, they have calculated that the cost of sowing 40 kg of cotton crop adds up to Rs. 3000.

During the meeting many options to support the cotton farmers were discussed. A direct subsidy was also considered but when concerned departments presented a figure of Rs80 billion, the suggestion was discarded.

Trading Corporation of Pakistan Chief, presenting his case said that due to limited human resource his department cannot buy cotton across the country.

There are only 500 staff from grade one to Chairman, and we have to procure wheat and rice and sugar also, how can we procure phutty (cotton) however, we would procure cotton bales.

The meeting also agreed that the input items including general sales tax on fertilizer, pesticide, energy and fuel should be reduced to zero to protect local farmers.

It was also recommended that considering the quality of local yarn, no import of thread should be allowed especially from India.

The committee rejected increase suggested by FBR and recommended that sales tax on value added textiles should be reduced to zero percent.

Committee Chairman, Khawaja Ghulam Rasool Koreja, directed Ministry of Textile to forward the summary to ECC, in time, for its final approval, so that the benefit could be passed to farmer community.