The Senate Standing Committee on National Food Security and Research on Wednesday recommended the imposition of Regulatory Duty (RD) on the import of cotton bale from India. The committee, which met with Senator Syed Muzaffar Hussain Shah in the chair, observed that import of cotton lint from India via Wagha border despite sufficient stock in the country would adversely affect cotton growers.
The committee urged Ministry of Finance to direct Federal Bureau of Revenue (FBR) to impose RD on import of cotton from India. A senior official of Ministry of Commerce informed the committee that presently approximately 400,000 cotton bales are available in the country.
"Out of 400,000 cotton bales available in the country 64,000 are with Trading Cooperation of Pakistan (TCP) and the rest with growers and other agencies", the official said. Under Import Policy 2013, All Pakistan Textile Mills Association (APTMA) imported 500,000 extra long staple cotton every year and they have imported it two months ago, he said, adding now they have requested for further import of cotton bales from India but the ministry has so far not allowed further import of cotton.
Shah said that arrival of new cotton crop in the market has already started therefore import of cotton from India will substantially add to the existing cotton stock. Cotton Commissioner Dr Khalid Abdullah informed that Pakistan is importing extra long staple cotton from United States and some other countries then why APTMA is urging for import of cotton from India.
Senator Saud Majeed said that the main reason behind import of cotton from India is that India gives subsidies on export of all surplus commodities which is not available to farming community in Pakistan. Due to massive subsidies on export of surplus commodities cotton in India, cotton is cheaper in India as compared to Pakistan, he said. The standing committee strongly felt that the good quality of cotton should be imported from US and other countries which is the valid justification of import of the same. However, there is no justification to import cotton bale from India when same quality is also available in the country.
The committee requested the Ministry of Finance to consider this recommendation on priority basis to protect agriculture sector especially cotton growers. Abdullah informed the committee that cotton cultivation in Sindh and Punjab province is progressing in slower pace as compared to last year. Overwhelming installation of sugar industry in some of the areas has taken over the cotton areas in such districts and uncertainty of cotton prices is one of the reasons behind the slower sowing of the cotton, he said, adding, country has witnessed 12 percent decline in cotton cultivation this year as compared to last year.