- Indian exporters and traders feel that they could export 1.5-2 million bales of cotton to Pakistan this year.
- Aptma has informed that the industry would have to spend $1.5 billion on import of 5.5 million bales due to a 35 percent production shortage this year.
Indian cotton exporters are eager to resume trade relations with Pakistan, and are eyeing to fill the void as Pakistan suffers from a 35 percent cotton production shortage 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.
Central chairman All Pakistan Textile Mills Association (Aptma) Dr Amanullah Kassim Machiyara has earlier informed that the industry would have to spend $1.5 billion on import of 5.5 million bales due to a 35 percent production shortage this year.
He also said that the quality of locally produced cotton has also deteriorated as compared to other cotton-producing countries, he added.
In 2018, India exported up to 500,000 bales of cotton to Pakistan, and with the current shortage Indian exporters and traders feel that it has a potential to reach 1.5-2 million bales this year.
“We expect annual exports for Indian producers and processors to increase by 10-15 per cent 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,” said Mahesh Sharda, president of the Indian Cotton Association.
Trade relations between both neighboring countries have come to a halt after India’s decision to revoke special status in Indian occupied Kashmir, back in August.