Cotton farmers suffer Rs 52b loss as mills pay lower prices

Textile barons, being sole buyers of cotton produced in the country, have caused an annual loss of Rs52 billion to farmers by offering lower prices for the commodity and monopolizing the market, reveal documents prepared by the Ministry of National Food Security and Research.

Owing to that reason, the farmers were compelled to grow other crops like sugarcane instead of cotton. Resultantly, the area planted with cotton had been continuously shrinking, the ministry said.

Besides this, according to the ministry, the quality of cotton has dropped considerably because of a lack of compliance with the Cotton Control Act 1996, non-implementation of the quality-based seed pricing system and no capacity-building of cotton pickers.

The ministry, in a report submitted to high-ups of the government, said the farmers were not getting proper prices for their crop, adding that no assurance was given by the government in that regard at the time of cotton harvest.

 
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