4 GOVERNMENT POLICIES

4.1 Cotton competes with sugar cane, rice and maize. Rice and maize are specific to certain areas and rarely compete for area with cotton. Real competition of cotton is from sugar cane. Prime cotton growing areas have been taken over by sugar cane although it consumes more water than cotton and is a year long crop. This has perhaps happened because government support price has been in favor of sugar cane. Cotton technology lobby has always been opposed to sanctioning sugar factories in prime cotton growing areas where by affecting cotton production. Perhaps there is a need to ban establishment of sugar factories in cotton growing areas and efforts may be made to relocate the sugar factories in NWFP or let the sugar factories import raw sugar and refine-it here thereby leaving area for cotton. Foreign exchange earned by the export of cotton can be used to import raw sugar.

4.2 It is suggested that GOP should deliberate seriously regarding its policy on cotton + wheat versus sugar cane. Support prices of cotton wheat and sugarcane are given in Table 5.

It is evident that government policy of support price is in favor of sugarcane. Return per hectare has been calculated by multiplying average yield by support price and is given. in Table 6.

There are four models of cotton + wheat = sugarcane

a) 20,000 + 8500 = 29140

b) 20,000 +11778 = 29140

c) 20,000 + 8500 = 41125

d) 20,000 + 11778 = 41125

All except one are in favor of sugarcane. This explains the shift of area towards sugar cane.

4.3 COST OF PRODUCTION

Cost of production and later on sale price of various crops enable the farmer to plan and allocate his resources. Agricultural subsidies used to be an important factor in planning. However, subsidies have been phased out.

4.3.1 In order to help the farmer and enable the government to plan, Agriculture Prices Commission (APCOM) was set up to determine the cost of production of various agricultural commodities. Cotton was no exception, In the past the cost determined by APCOM used to form the basis of minimum guaranteed price of Phutti to the farmers. Based on these prices Ministry of Commerce used to determine the minimum support prices for yarn.

4.3.2 Cost of production of cotton, wheat and sugarcane as determined by APCOM are given below:-
 

COTTON	Cost of cultivation/acre 1986-87  Cost/40Kg	= Rs. 2,729/-  = Rs. 170/-
WHEAT	Cost of cultivation/acre 1987-88  Cost/40Kg	= Rs. l,460/-  = Rs. 68/40.
SUGARCANE	Cost of cultivation/acre 1984-85  Cost/40Kg	= Rs. 3,872/-  = Rs. 07/90

Source: APCom.

4.3.3 From the above it is clear that re-orientation of policies is needed if shift of land under cotton to sugar cane is to be reversed.

4.3.4 Cost of cotton cultivation needs to be reduced. This is difficult in view of rising cost of inputs. In view of this and finite area, the ONLY solution is INCREASE IN PRODUCTIVITY.

4.4 ENVIRONMENT:

4.4.1 Environmental control at all stages of cotton producing, ginning, spinning, weaving, dyeing and finishing has assumed importance.

European countries are laying great emphasis over environmental control. For instance, Europe has banned the import of fabrics dyed with Azo dyes. They are also complaining about indiscriminate spray of cotton crop, In February, 96 a Conference was held in Holland to discuss environmental problems of cotton. The consensus was that International Commodity Related Environmental Agreements (ICREA) would be the norm in the near future. There was also consensus that the developing countries are not exerting enough pressure on the industrialized countries to help the developing countries in environmental control. This need serious attention.

4.4.2 Cotton is a difficult crop to grow and it needs more attention than some other crops. During the growth period of cotton there is a tendency to spray insecticide indiscriminately. Little is realized that it is POISON that is being sprayed. It is not only a health hazard to human beings but also destroys predators and microbes and will ultimately leach sub-soil water. IPM is the need of the time and ultimate goal should be at best 1-2 spray. However care is needed when non chemical means are substituted for chemical ones. A study conducted by Gianessi (1994) at Texas A & M University found out that if no chemicals were used, yield of cotton declined by 39%. The question is can Pakistan afford this decrease in cotton yield. Judicious use of chemicals will not only protect environment but would save F.E. being spent on the import of insecticides.

4.4.3 PHEROMONES Recent experiments with sex pheromones for control of PBW have proved successful. By this application, natural balance is not disturbed, predators are not killed and other pests are also controlled.

4.4.3.l Release of predators however is fraught with danger. If proper control is not exercised there is a danger of predators becoming pests themselves.

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