After protest of traders and exports, Trade Development Authority Pakistan (TDAP) and the State Bank of Pakistan have agreed to start registration of cotton export contracts for the current fiscal year. A week earlier, TDAP stopped registration of cotton exports order saying that export registration for the current fiscal year 2012-2013 will be made after new trade policy.
However, now after protest of exporters and on immense pressure of Karachi Cotton Association (KCA) and Pakistan Cotton Ginners Association (PCGA), TDAP has announced restart registration of export contracts. Exporters have expressed satisfaction over the registration of contacts and said this decision by TDAP and SBP is expected to boost cotton exports and foreign exchange earnings as well as may improve domestic cotton prices with ultimately improving the per acre earnings of the cotton farms.
"TDAP is under the pressure of a powerful lobby and it unlawfully declared the export policy 2009 non-effective and refused to register cotton export agreements resulting in suspension of all cotton export deals" said Ihsan-ul-Haq, executive member PCGA.
With ban on export, there were apprehensions of fall in earnings of cotton farmers as cotton prices were on decline in the domestic market due to a ban on export, he said and added that resumption of export has created hopes for farmers and traders. The PCGA and KCA have registered their protest with Ministry of Commerce and after that TDAP has announced yesterday to restart registration.
He added that this year due to unexpectedly late cotton arrival in India, their importers are very much interested in importing cotton from Pakistan. Pakistani exporters were also looking opportunities in the Indian market and so far finalised agreements for export of nearby 2000 ton cotton, he informed.