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11. MARKETING OF SEED COTTON.

11.l Pakistani farmer sells his seed cotton to one or a combination of the following:-

  1. Arthi
  2. Mandi
  3. Ginning Factory
11.2 Small farmer usually gets the short end of the deal. Big farmers/ Land lords usually sell their produce to ginning factories on un-fixed rate which is then fixed by the farmer on any day at- his discretion. The transaction is based on rates prevalent in KCA on that particular day. Table 12 shows the seed cotton prices and lint prices. It can be seen that seed cotton prices are fairly in line with lint prices.
TABLE 12: SEED COTTON AND LINT PRICES AVG (RS PER 40/KG)

Source: PCCC Source: KCA

However, payment by the ginner to the grower is made after the ginner sells lint to textile mills or other buyers. From the foregoing it is clear that the system is loaded against the farmer.

11.3 Another aspect of this system of marketing is that mixing of various cultivars takes place at all the above three marketing places. The mixed seed of various cultivars from the ginning-factories is sold to the growers thus compounding mixture. This would be of no consequence if all the cotton seed produced by various ginning factories is crushed for oil and the farmers are provided pure seeds every year by public or private seed companies. In United States farmers do not produce their own seed and I00 percent of the seed is provided by various seed companies,, Thus there is reason for strengthening indigneous seed companies. These companies may also be encouraged to produce 100 percent of the seed which they sell to the farmers.

 

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