ECC pegs cotton price

ISLAMABAD: The Economic Coordination Committee (ECC) on Tuesday fixed cotton price at Rs 8,500 for every 40 kilogram of cotton for the current sowing season. 

Federal Minister for Finance and Revenue Ishaq Dar presided over the cabinet meeting of the ECC. 

Ministry of National Food Security and Research also submitted a summary on Cotton Intervention Price (CIP) for 2023-24 and argued that price fixing at this time, ahead of the main sowing season, will help growers decide about the area and investment in cotton crop which will potentially enhance the yield by 10-15%.

This is done so to revive cotton production in the country, bring stability in the domestic market and assure fair return to the farmers, as discussed in the meeting. The ECC directed the ministry of finance to constitute the Cotton Price Review Committee (CPRC) with a mandate to review market prices. The ECC further directed the ministry to proactively involve the cotton industry.  

The CPRC considered a summary of the Ministry of Commerce on extension in the shipment period of sugar export and after detailed discussion allowed extension from 45 to 60  days time limit for shipment of sugar from date of quota allocation.

The National Disaster Management Authority (NDMA) submitted a summary on financial requirements for executing Pakistan’s assistance towards Turkiye and Syria. 

To support the brotherly countries in their difficult time, NDMA was directed to maximise and extend full support from February 6. Considering timely help and support to Turkiye and Syria, the ECC approved immediate allocation of Rs 10 billion for the payment, procurement and transport of the relevant goods.

In the meeting, the Ministry of Energy highlighted PSO’s import of Liquefied Natural Gas (LNG) in the country to meet the energy requirement in terms. PSO is importing eight to nine LNG cargoes per month. In order to enable PSO to remain afloat in its payment obligations to LNG suppliers, the ECC allowed a sovereign guarantee in favour of Sui Northern Gas Pipeline Limited (SNGPL) for commercial borrowing of Rs 50 billion on immediate basis.