India has not banned cotton export to Pakistan: Mirza

The Indian government has not banned cotton export to Pakistan. In fact the Indian cotton exporters have backed out of their commitments with Pakistani cotton importers after abnormal increase in the cotton prices in the international market, Advisor to Textile Ministry Dr Mirza Ikhtiar Baig told Business Recorder here on Monday.
Baig, who recently visited India to persuade the government and the Indian Cotton Association to honour their deals with the Pakistani importers, said that the Indian government denied that it had banned cotton export to Pakistan.
"Indian officials assured us that from the government side there is no ban on the cotton export to Pakistan. It is a matter between the seller and the buyer which should be settled through bilateral negotiations or through arbitration," he added. Baig said All Pakistan Textile Mills Association (APTMA) members had firmed up deals with the Indian cotton exporters at the rate of 85 to 90 cent per Lb for the import of 4,00,000 bales in October in view of damage to domestic cotton crop by floods. However, owing to sudden change in the world cotton prices, which have doubled since the orders were placed with the Indian exporters, the Indian exporters have backed out of their commitments. The Advisor to Textile Ministry left for Ankara on Monday evening on the instructions of the Prime Minister to resolve the critical issue of anti-dumping duty on Pakistani textile exports.
Talking to this scribe on telephone Baig said he would give a briefing to the Turkish government that by providing raw material to Turkey, Pakistan was in fact helping its brotherly country for development of its value-addition textile industry.
He said Turkey has increased anti-dumping duty on Pakistani garments from 9.5 per cent to 52 per cent and on grey fabric from 6.4 per cent to 35 per cent Turkey is one of the major buyers of Pakistan's cotton fabrics. He said anti-dumping duties imposed by Turkey has created a crisis in the textile industry especially after an agreement between the two countries to reach a bilateral trade of $2 billion.
He said Turkey is a key market for Pakistani textile exports of about $1 billion. It is the third largest importer of Pakistan cotton fabric including denim, grey and processed fabric from Pakistan, besides being an important link with the EU nations in the course of international trade. As of now, Pakistan stands to be a leading supplier of grey and denim fabric to Turkey as a raw material for their value-added products. He hoped that the matter would be amicably resolved to the satisfaction of both sides.