MoTI proposes launch of ''crop insurance policy'' | Business Recorder

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MoTI proposes launch of ''crop insurance policy''

October 16, 2012 TAHIR AMIN 0 Comments The Ministry of Textile Industry has proposed introduction of ''crop insurance policy'' with the purpose to boost agri sector. A meeting of the sub-committee of Senate Standing Committee on Textile Industry, which met with Senator Mohsin Khan Leghari in chair, was informed of this on Monday. Ministry officials said farmers taking loans from banks on short-term, their crops were also insured, but those who didn''t take loans were not provided with the same facility. In the upcoming cotton policy, it has been proposed that crops should be insured across the board, which will not only help reduce farming risks, but also help increase yield. The committee meeting was called to examine the issues and hurdles being faced by textile sector including all industries/components of the textile value chain. The committee directed the MoTI to submit a detailed report on the issues and challenges being faced by the local textile industry. The committee also convened the ministry of industries and the provincial departments concerned with textile industry to submit report in this regard in next meeting. Ministry officials informed the committee that there was no research and development activity in the textile sector, which was a major impediment in the progress of the sector. Senator Osman Saifullah Khan said that they (farmers) should be educated on the issues of textile industry, and legislation should be done to resolve the issues of the sector. Briefing the meeting, Joint Secretary MoTI said the textile sector was playing pivotal role in the economic development and absorbing skilled and unskilled labour force. He said the textile export comprises 57 percent of the total exports, whereas it was providing employment opportunities to 39 percent labour force. Of the total financing by local banks for manufacturing sector, the share of textile sector stood at 41 percent. Export of cotton has witnessed a rise of 37.27 percent during July-May 2011-12 over the same period last year. He said Pakistan was the third largest cotton producer in the world, while it was contributing only 2 percent to global cotton export, which was at the lower level due to inadequate funding for textile sector. A total of Rs 24.75 billion were allocated against the approved financing plan of Rs 123 billion for 2009-12, which is around 20 percent only of the total allocation, the committee was informed. The meeting was attended among others by Senator Osman Saifullah Khan and Senator Amar Jeet.

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