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Record cotton production.

Record Cotton Production

Against 4.0 per cent actual growth rate achieved in 1989-90 agriculture is projected to achieve a growth rate of 4.8 per cent in 1990. Pakistan expects a record cotton production of 9 million bales this year, as against 8.55 million bales in the preceding year. Areawise target has been achieved in Punjab and about 99 per cent of the targeted area has also been brought under cotton crop in Sindh this year. Crop in Punjab was in very good shape. However, some areas in Sindh had been attacked by insects like bull worm while fly and Jassid were rapidly multiplying.

The government has declared 1990-91 as a wheat year with the objective of augmenting the national production of the staple food. During the last five years whet support prices increased from Rs. 70 per 40 kg. to Rs. 96 per 40 kg. at present. Experts have proposed increase in wheat support price to market its production economically viable as part of the grow more wheat campaign. Pakistan is hoping to harvest a target of 15 million tons of wheat this year. For the first time in years wheat harvests are generally looking good world-wide and the prospect of over supply is pushing prices down close to four years lows.

Rice crop may turn out better and the target of output of 3.64 million tons may be achieved. The Rice Export Corp. (RECP) plans to export rice worth 375 million dollars against the last year export of 213 million dollars. Pakistani Basmati is facing a tough time as most of the countries now prefer purchase of rice from Thailand and other Far Eastern countries which is much more cheaper.

Support Price

The Economic Coordination Committee (ECC) of the Cabinet on August 15, approved the cotton and rice policies for 1990-91 fixing the minimum support prices of cotton and procurement prices of rice. The ECC fixed the minimum support prices of different varities of lint cotton at the following rates:

The Cotton Export Corporation (CEC) will work out specifications and allow corresponding premium for quality cotton in order to provide incentives to ginners for improving grade of cotton. The committee decided to fix benchmark price of cotton at Rs. 800 per maund for the purposes of levy of exporty duty. The ECC considered the rice policy for 1990-91 and approved the procurement prices for the following categories of rice for 1990-91:

The committee directed the RECP to introduce higher quality rice for sale in the international market. The ECC also decided to exempt import of rice milling machinery from import duty and import surcharge. The ministry of Finance was directed to ask DFIs and banks to provide medium term credit for import of rice milling machinery against cash foreign exchange.
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Title Annotation:Pakistan's cotton production
Publication:Economic Review
Date:Oct 1, 1990
Words:465
Previous Article:Factors inhibiting foreign investment in Pakistan.
Next Article:Wheat self-sufficiency: myth and reality.
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