The Ministry of Food, Agriculture and Livestock (MINFAL) has written a letter to the State Bank of Pakistan for enhancing the credit limit of the ginning units to save them from current financial crunch, said Federal Minister for Food, Nazar Muhammad Gondal.

He said more than 800 ginning factories across the country have closed due to load-shedding and low demand. Financial crisis in USA and European Union, have forced suspension of almost 75% foreign export orders of garments. Due to low demand and high supply of cotton especially phutti, the price of cotton has declined from Rs 4,200 to Rs 2,900 per 40-kg while the price of phutti has decreased from Rs 2,200 to Rs 1,300 per 40-kg.

The Minister said that the government is providing Rs 32 billion subsidies on fertilizers. To facilitate farmers, DAP price has been capped at Rs 3,050 per bag and the government will take strict action against the culprits involved in its hoarding and smuggling. Total consumption of DAP across the country is 820,000 tonnes while the stocks available with the government are 990,000 tonnes. So there is no fear of shortage of fertilizer in the local market at all.