ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has rejected the proposal of a subsidized price for the purchase of cotton and approved a policy of incentives for the manufacture and manufacturing of mobile phones at the local level.
Food Security Minister Syed Fakhr Imam's proposal for a minimum support price for the purchase of cotton through the Trading Corporation of Pakistan was presented to the ECC.
In fact, Fakhr Imam had proposed a subsidy of Rs. 4,224 per man, which was reduced to Rs. 4,000 per man, but it was rejected on the merits of the subsidy instead of money.
Foreign Minister Shah Mehmood Qureshi appeared at the meeting as a 'special guest' to present a case for a minimum support price for farmers so that the flow of money could be improved and they could be encouraged to grow more crops.
On the occasion, Minister for Economic Affairs Makhdum Khusro Bakhtiar also supported the farmers' case but Abdul Razzaq Dawood, Advisor to the Prime Minister on Trade, opposed the move.
His main argument was that the textile industry was already at a disadvantage compared to regional competitors such as India due to the availability of better quality cotton at lower prices.
So if the government stops local textile mills from importing and making meager profits, it will mean hurting textile exports.