Indian businessmen seek $1.5 billion trade deal with Pakistan: Report
NEW DELHI - Indian businessmen seek $1.5 billion trade deal with Pakistan over cotton exports, Indian Report has claimed.
Indian cotton exporters are looking forward to resuming trade with Pakistan, as Pakistan is seeing a 35 percent fall in cotton production this year, 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 with the current shortage, Indian exporters are looking to sell 1.5-2 million bales this year.
“There is a good opportunity to export cotton and cotton yarn to Pakistan from India. From multinational companies to domestic exporters, all are closely monitoring the situation. Traders may represent the case to the Indian 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 by 10-15 percent over the previous year up to 6 million bales. Demand will largely come from Bangladesh, China, and Vietnam. We are aware of the shortfall in Pakistan and resumption of trade is a political decision to be made by the two countries.
Central chairman All Pakistan Textile Mills Association Dr. Amanullah Kassim Machiyara has said that the industry will have to spend $1.5 billion on import of 5.5 million bales due to a 35 percent production shortage this year.
He said that the quality of locally produced cotton has also deteriorated as compared to other cotton-producing countries. The imposition of duties had a massive impact on the entire value chain, he stressed.
He lamented that Pakistan used to be a cotton exporting country, it has now become a net importer of cotton.
Back in August, trade relations between Pakistan and India came to a halt after India’s decision to revoke the disputed status of Indian occupied Kashmir.