Aptma rejects ban on import of cotton from India

Aptma rejects ban on import of cotton from India

Pakistan industry is facing a shortage of cotton crop by 34.32% in this year.

The Dollar Business Bureau

The All Pakistan Textile Mills Association (Aptma) has rejected the demands to stop importing cotton from India. These demands were made by the Senate Committee on National Food Security and Research. According to this committee, Pakistan’s agricultural economy will be ruined if its government does not prevent the import of 0.5 million bales of cotton from India via the Wagah Border.

As there is an adequate stock of cotton lint with Trading Corporation of Pakistan (TCP), the observations made by the Senate Committee are baseless, Aptma Chairman Tariq Saud said in a statement on Thursday. In a recently held meeting under the leadership of Commerce Secretary, the officials of the TCP have confirmed that a balance stock available with TCP is around 75,900 bales of 2014-15 season.

Tariq Saud has suggested the Senate Committee not to raise voice against the import of cotton from India. Instead of asking for any ban on cotton imports, the committee should talk on the issue of crop failure and suggest measures to prevent cotton crop failures from happening again and again, he said.

Pakistan industry would always prefer to use domestic cotton over imported cotton from any other country. However, appropriate cotton stock should be provided for the industry to operate at full capacity. Currently, the industry needs more than 16 million bales, while the domestic cotton available is not even 10 million bales. If cotton imports are banned, then how to fill the requirement gap of millions of bales, he questioned.

Already, there is a shortage of cotton crop by 34.32% in this year when compared to the crop production of the previous year. In terms of volumes, the shortage is over 5.103 million bales in this year. In this situation, if the import of 0.5 million bales cotton lint from India is restricted, it would enhance the problems of spinning industry in Pakistan. Due to the shortage of raw material, the spinning units would be compelled to close production, which may result in loss of jobs, and other law and order problems, Aptma Chairman informed.

He further said that Pakistan spinning industry is paying cotton cess of Rs.800 million for cotton research. Still the industry is suffering with lack of sufficient cotton stock in the country. Almost 25% cotton required for consumption is imported from other countries. Pakistan Central Cotton Committee should bring innovative cotton seeds that provide high yield to meet the domestic cotton consumption needs, he added.


The Dollar Business Bureau - May 20, 2016 12:00 IST