Release of one million cotton bales: India criticised for employing delaying tactics

All Pakistan Bedsheet & Upholstery Manufacturers Association (APBUMA) has expressed concerns over the dilly-dallying of the Indian government in the shipment of one million cotton bales to Pakistan and termed it a sheer negation to the free market mechanism.
Indian government's intervention to the free market mechanism has already earned heavy criticism from the international community, said Chairman of APBUMA Khawaja Muhammad Jalaluddin Roomi while talking to newsmen, here on Tuesday. He said India has produced 32.5 million cotton bales this year with 10 percent upward growth compared to last fiscal year. Indian government, vide notification 12(RE-2010)/2009-14 December 16, 2010 made amendments in earlier notifications and distorted free market mechanism. According to the amendment, contracts for export of cotton shall be registered with the Directorate General of Foreign Trade prior to shipment.
Also, clearance of cotton consignments by customs department should be after verifying that contracts have been registered. How Indian government could negotiate with European Union (EU) for market access in the form of Free Trade Agreement after distorting the free market mechanism, he questioned.
Roomi pointed out that EU has already imposed anti-subsidy duty on India for introducing other subsidies, Technology Upgradation Fund Scheme (TUFS) and disbursing hundreds of billions of rupees for subsidised investment in the textile sector. The latest intervention to the free market mechanism on cotton trade may also attract similar treatment to Indian products from the EU and the US, he maintained.
He termed it an irony that Indian ministry of commerce and industry has informed that the modalities of registration for export of cotton would be notified separately once the balance quantity of cotton, to be exported, is ascertained. This sudden intervention to the free market mechanism has stuck up one million cotton bales of Pakistani importers, having entered into agreements with Indian cotton exports well before the controversial notification.
APBUMA chairman said the controversial notification tantamount to backing out of Indian cotton exporters from their commitment with Pakistani cotton importers. He further said Indian government has deprived their own cotton growers by this intervention simply to support its textile industry procuring cotton at prices 30 percent less than the international price.
He appealed Pakistan and Indian governments to take up the issue on priority basis in the larger interest of two Asian textile giants and let the pending cotton shipment be released to Pakistan in the bilateral trade interest of the two countries.