Import of one million bales of cotton: traders finalise deals with Indian exporters

Pakistani importers have finalised contracts with Indian exporters for import of over one million bales cotton to meet domestic shortage. A few months back the Indian government had imposed ban, and had stopped issuance of cotton export licence, due to which imports from India had completely halted.
However, the Indian government, on September 28, 2010, allowed exports of 5.5 million bales of cotton from October 1, 2010, with shipment from November 1, 2010. "Pakistan's textile sector was already waiting for lifting of ban on cotton export by Indian government. After the announcement by Indian government the spinners booked import of over one million cotton bales with Indian exporters", said Shahzad Ahmed, a former chairman of All Pakistan Textile Mills Association.
Shahzad said that currently Pakistan is facing shortage of 3.5 million bales with expected production of 12.5 million bales against the consumption of 16 million bales. He expressed concern over rising prices of cotton on international front and said that costly import of cotton would directly affect the prices of cotton yarn.
"We have booked "Shankar" (Indian cotton) at 90 cent per pound, while right now prices have surged to 1.22 dollar per pound due to rising world prices," Shahzad said. "Current surge in world cotton prices has been witnessed after the USDA report, in which US Department of Agricultural has predicted that China's cotton production would be less than earlier estimations", said Yasin Siddik central vice chairman of APTMA. Yasin also confirmed the Pakistan's importers have completed over one million bales deals with Indian traders.