Cotton import from India: Indian exporters refuse to fulfill deals: APTMA chief

Indian cotton exporters have refused to fulfill the already finalised export deals with Pakistani importers and stopped shipments to Pakistan. Addressing a press conference here on Tuesday, vice chairman All Pakistan Textile Mills Association (APTMA) Yasin Siddik said that deals for some one million cotton bales' import had been finalised with Indian exporters by Pakistani buyers, out of which only 0.25 million bales had arrived in Pakistan.
"The Indian exporters have regretted to ship the remaining cotton bales due to registration condition imposed by their government," he added. He said in August Indian government had imposed unannounced ban and stopped issuance of cotton export licenses, due to which import from India came to completely halt.
"Later on, on the recommendation of the group of ministers of Indian Cabinet on the policy of cotton export, on September 28, 2010 allowed export of 5.5 million bales of cotton from October 1, 2010 with shipment from November 1, 2010 to December 2010,"he added.
"As Pakistan's textile sector was already waiting for the ban to be lifted by Indian government, it took full advantage of the ban lift and booked over one million cotton bales with Indian exporters to meet the local demand," Siddik said. However, the Indian government had once again imposed unannounced ban on export of cotton and again set the registration condition, he maintained.
"During current season, Indian authorities imposed registration condition twice, as in September 2010 they asked their exporters to get themselves registered for export of 5.5 million bales with a maximum shipment date of December 15, 2010," he added, saying that now they have again asked their traders for registration for export of 1.9 million bales.
"This situation has disturbed the export process in India and now Indian traders have flatly refused to fulfil the already finalised deals," Siddik said. The APTMA chief informed that when Pakistani importers finalised deals with Indian exporters, cotton price was 80-90 cent per pound and now price of cotton had reached 1.3 dollar per pound.
"So far Pakistan has received only 0.25 million bales from India against the deals of one million bales, while the remaining 0.75 million bales have not been shipped yet and this situation is creating shortage and panic in the local market," he added.
"As per Indian authorities estimates, Indian have surplus cotton of some 9-10 million bales in this season. But despite that they are creating hurdles in export process," he informed. Siddik urged Prime Minister Yousuf Raza Gilani to intervene in the mater and get restored the cotton import from India, as last month when export of onion was banned to India through Wahga border; the prime minister had intervened and issued directives for fulfilment of already finalised deals.
"With help of ministries of foreign affairs and commerce, the cotton import issue can be resolved easily. But it need serious efforts," he added. Asif Inam convenor APTMA cotton committee, Tariq Saud chairman APTMA Sindh Balochistan, Imran Maqbool, Khurram Inam, Sleem Shakoor and Khurram Ashfaq were also present on the occasion.