The government is using diplomatic channels to successfully persuade the Indian government to meet its contractual obligations in respect of export of 1.2 million cotton bales to Pakistan. Pakistani importers negotiated import of 1.2 million bales with Indian counterparts, to be delivered in December, January and February.
However, the government of India has directed Indian exporters of cotton not to export more than 5.5 million bales within the next 45 days and has declared a moratorium on exports from then onwards. This has raised concerns in Pakistan about the possibility of the Indian cotton exporters being unable to meet their contractual obligations to Pakistanis.
A delegation of All Pakistan Textile Mills Association (Aptma) met Indian High Commissioner last week and apprised him of their concerns. The High Commissioner assured the delegation of his support and also asked the Pakistani importers to write a letter to the Indian government, attached with a copies of the contracts made earlier. A delegation of the textile sector, to be led by Minister for Textile Industry M Farooq will soon leave for India to take up the issue with New Dehli, sources in the Textile Ministry told Business Recorder.
The government has asked Pakistan's High Commissioner in New Delhi to take up the issue with the Indian government to facilitate cotton export from India to Pakistan as per the contracts signed between Pakistani importers and Indian exporters. According to official estimates, cotton production is likely to decline by 18.5 percent, to 11 million bales, against the target of 14.11 million bales.
Cotton crop sown on about 1,719,700 acres has been badly affected by the floods. The crop on the remaining 6035,900 acres is safe. Cotton production is estimated at 11.5 million bales, taking into account crop damage due to floods in Punjab and Sindh against the potential production of 13.860 million bales this year.
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