NEW DELHI – Indian businessmen seek $1.5 billion trade deal with Pakistanover cotton exports, Indian Report has claimed.
Indian cotton exporters are looking forward to resuming trade withPakistan, as Pakistan is seeing a 35 percent fall in cotton production thisyear, reported Economic Times.
Currently, Pakistan is importing cotton from the US, Brazil, and Spain.
In 2018, India exported up to 500,000 bales of cotton to Pakistan, and withthe current shortage, Indian exporters are looking to sell 1.5-2 millionbales this year.
“There is a good opportunity to export cotton and cotton yarn to Pakistanfrom India. From multinational companies to domestic exporters, all areclosely monitoring the situation. Traders may represent the case to theIndian government,” said an official of a Mumbai-based export house,quoted Economic Times.
Mahesh Sharda, President of Indian Cotton Association said,
We expect annual exports for Indian producers and processors to increase by10-15 percent over the previous year up to 6 million bales. Demand willlargely come from Bangladesh, China, and Vietnam. We are aware of theshortfall in Pakistan and resumption of trade is a political decision to bemade by the two countries.
Central chairman All Pakistan Textile Mills Association Dr. AmanullahKassim Machiyara has said that the industry will have to spend $1.5 billionon import of 5.5 million bales due to a 35 percent production shortage thisyear.
He said that the quality of locally produced cotton has also deterioratedas compared to other cotton-producing countries. The imposition of dutieshad a massive impact on the entire value chain, he stressed.
He lamented that Pakistan used to be a cotton exporting country, it has nowbecome a net importer of cotton.
Back in August, trade relations between Pakistan and India came to a haltafter India’s decision to revoke the disputed status of Indian occupiedKashmir.