ECC fixes cotton intervention price

ISLAMABAD: Economic Coordination Committee (ECC) of the Cabinet on Tuesday fixed cotton (phutti) intervention price at Rs8,500 per 40Kg for current sowing to revive cotton production, bring stability to the domestic market and assure a fair return to the farmers in the country.

The Economic Coordination Committee (ECC) met with Minister for Finance and Revenue Senator Mohammad Ishaq Dar in the chair.

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

The ECC directed the Ministry of National Food Security and Research to constitute 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 ECC considered a summary of the Ministry of Commerce on an extension in the shipment period of sugar export and after detailed discussion allowed an extension from 45 days to 60 days time limit for shipment of sugar from the date of quota allocation, reported the state news agency.

The National Disaster Management Authority (NDMA) submitted a summary on financial requirements for the NDMA execution plan regarding Pakistan’s assistance for Turkey and Syria earthquake-2023. It was informed that the devastating earthquake caused massive causalities in Turkey and Syria.

Meeting of the ECC, chaired by Finance Minister Senator Mohammad Ishaq Dar, approved Cotton(Phutti) Intervention Price for the current sowing season at Rs. 8500/40kg. Extention in time limit in shipment period of sugar export from 45 days to 60 days from quota allocation(1/2).. pic.twitter.com/Rp7MYPGxuC

— Ministry of Finance (@FinMinistryPak) March 14, 2023

To support the brotherly countries in their difficult time, NDMA was directed to maximize and extend full support from 6th February and onwards. Considering timely help and support to brothers and sisters in Turkey and Syria, the ECC approved immediate allocation of Rs.10 billion to NDMA for payment for the procurement and transport of the goods to affected areas in Turkey and Syria.

Ministry of Energy (Petroleum Division) tabled a summary on the liquidity requirement of PSO for the import of Petroleum products in the country and argued that PSO is engaged in the import of Liquefied Natural Gas (LNG) in the country to meet the energy requirement in terms of LNG and petroleum products.

The PSO is importing 8-9 LNG cargos per month whereas as per the contracts with LNG suppliers, PSO is obliged to clear the invoices within the time frame. In order to enable PSO to remain afloat in its payment obligations to LNG suppliers and to continue LNG supply chain, the ECC allowed a sovereign guarantee in favour of SNGPL for commercial borrowing of Rs. 50 billion on immediate basis.

The meeting was attended by Minister for Industries and Production Syed Murtaza Mahmud, Minister for Commerce Syed Naveed Qamar, Ex-Prime Minister Shahid Khaqan Abbasi, SAPM on Finance Tariq Bajwa, SAPM on Revenue Tariq Mehmood Pasha, SAPM on Government Effectiveness Dr. Muhammad Jehanzeb Khan, federal secretaries and other senior officers.