Pakistan hopes for elusive Indian cotton | Pakistan Today

Pakistan hopes for elusive Indian cotton

LAHORE – Pakistan Foreign Minister Shah Mahmood Qureshi, on the request of Ministry of Textile Industry and All Pakistan Textile Mills Association (APTMA), has asked the Indian government to ensure early shipment of one million cotton bales of Pakistani importers stuck up in India since last three months due to the ‘doctored default’ by Indian exporters, reluctant in fulfilling the contractual obligations.
Textile Minister Rana Farooq Saeed and APTMA Chairman Gohar Ejaz called on the foreign minister and apprised him of the situation and the hardship faced by the textile industry on account of a delay in the shipment of one million cotton bales subsequent to intervention in cotton trade by the Indian government.
In October 2010, the Indian government made it mandatory for all cotton exporters to obtain registration certificates for export despite the fact that India had an exportable surplus of about eight million bales, they briefed the Foreign Minister.
Most of the contracts with Indian exporters took place in September 2010 for shipment in November 2010 at around the price range of $0.80 to $1.00/pound, they said, adding: Pakistan imports 3.5 to four million bales of cotton annually out of which about 1.5 million bales are imported from India.
The Indian government released a quantity of 5.5 million bales to be exported from November 1, 2010 till December 15, 2010. It is important to point out that the price of raw cotton in the international market increased from $0.80 to about $1.45/pound during this period. The condition for registration certificate has given the Indian suppliers an opportunity to back out from the cheaper contracts on the pretext that they could not obtain certificates within the stipulated time.
APTMA Chairman Gohar Ejaz stressed the point that APTMA is not interested in pursuing the option of arbitration before the International Cotton Association (ICA) and expects a positive gesture from India on reciprocity basis after permission of onion exports to India by the Pakistan government.
APTMA chairman urged the foreign minister to intervene on behalf of the industry and communicate the Indian government for delayed shipment of cotton to Pakistani importers on a priority basis. Foreign Minister Shah Mahmood Qureshi telephoned his Indian counterpart to look into the matter besides sending a written communique.

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