The country may import 0.7 to 1.2 million cotton bales for the current season via land route through Wagah border that would cost around Rs 10-15 billion to the national exchequer. According to reliable sources, the country may face a shortage of about 2 million bales for 2008-09.
Earlier, Pakistan's Cotton Crop Assessment Committee said that the country might achieve the cotton production target for 2008-09 of just 12 million bales. It shows that the country may have the shortfall of 15 percent in cotton production as compared to the set target. The main reason behind missing of cotton production target for the year, 2008-09 may be attributed to the non-availability of certified seeds for the crop and the failure of the government in introducing approved Bt cotton seeds for the growers.
Due to the non-availability of approved Bt cotton seeds in the market, the farmers have started smuggling these seeds from India. Almost 60 percent farmers in Punjab and 40 percent in Sindh have made use of illegal Bt cotton seeds. Raw material from unapproved Bt varieties, may result in reduced quality cotton that would be unacceptable from the traders' point of view to export.
"In 2007-08, almost 3 million cotton bales were imported from India through Wagah border and its very unfortunate with Pakistan that even having agro-based economy, the country still have to import a huge quantity of cotton every year" sources disclosed. According to a report of International Cotton Advisory Committee, world cotton production is estimated at 114 million bales for 2008-09, while the world cotton area is projected to continue declining for the third consecutive season 2009-10.
Decreasing cotton returns, more attractive prices for competing crops, and expected difficulties in financing inputs are encouraging farmers to continue switching to alternative crops. On the other hand, Pakistan Cotton Ginners' Association (PCGA) is demanding of the government to import cotton from India via sea route in spite of using the land route.
"We already have a bulk of unsold 1.4million cotton bales and as compared to last year, the textile industrialists have reduced buying of cotton by almost 20-30 percent. They are of the view that due to deteriorating law and order situation in the country, the foreign export orders have reduced alarmingly", a ginner, on the condition of anonymity told this scribe.
He added, "The textile industrialists have the double-standards. On one hand, they have reduced buying cotton from ginning factories while on the other hand, they demanded of the government to import cotton immediately via land route through Wagah border".
The ginner disclosed that the domestic cotton market may collapse if the government retains its decision of importing cotton via land route. "After this decision of the government about the import of cotton via land route, the price of the commodity in the domestic market has already reduced from Rs 3,450 per maund to Rs 3,250 per maund," the ginner lamented. He said that the government should consult all the stakeholders before making any decision without being influenced by a single party.
"If the government does not take any action against its earlier decision of importing cotton via land route, all the ginning factories would go on strike which really mean that 1,200 ginning units would be closed," the ginner explained. When Business Recorder tried to contact the Textile ministry to seek comments on the issue, no one was ready to speak in this regard.
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