The textile industry of Pakistan will have to face a loss of $200 million to $400 million if India refuses to lift restrictions on export of cotton to the country, sources in the Ministry of Textile said here on Tuesday. The price of cotton has increased in the global market from 80-85 cent per lb to 170 cent per lb.
"The increase in the price of cotton in the international market has instigated the Indian exporters to withhold the cotton export orders, violating the rules of World Trade Organisation (WTO). If India does not fulfil its commitment, then it is feared that the textile industry may face millions of dollars loss", sources said. Sources said that the government has already asked the Indian High Commissioner posted at Islamabad to assist in import of cotton from India. "We are doing our best to solve the issue to save the local industry", sources added.
Pakistan has had low cotton production in 2010-11 owing to floods and severe damage to the cotton crop in the cotton producing areas of Punjab and Sindh. Almost 1.1 million acres of land has been affected resulting in damage to 1.8 million cotton bales. Cotton production target for the current fiscal year was fixed at 14 million bales while it has achieved 11.2 million bales so far. It means that Pakistan is far from achieving its production target set for the fiscal year.
"Pakistan had approached Indian exporters for import of 1.5 million bales of cotton. If India does not lift the ban on cotton exports to Pakistan, then we will have to buy expensive cotton from the USA and West Africa. That would totally destroy our financial position as the prices in international market are very high", sources said. They said that due to good cotton production during the current season, India had decided to export 5.5 million bales of cotton, and till December 25, 2010 it had exported 3.7 million bales to countries including Pakistan.
So, for the export of rest of 1.8 million cotton bales, India had asked the international market for on line registration from January 1 to January 10. Keeping this in view, the cotton importers from Pakistan registered themselves for import of 0.4 to 0.5 million bales of cotton. It was agreed by the Indian exporters that the cotton would be exported to Pakistan from January 25 to February 25, but India had refused to export. That may destroy Pakistan's textile industry.