Cotton cannot be imported from India as permits issued by the Department of Plant Protection, Ministry of Food Security are valid only from January 1, 2018 to March 31, 2018. Following significant decreased in local production of the natural fibre, the federal government permitted the import of cotton from India in the last week of November.
Ihsanul Haq, Chairman, Pakistan Cotton Ginners Forum (PCGF) noted, due to procedural delays and issuance of permits that are valid from January 1, cotton import is yet to take off. The chances of a significant amount of cotton import from India were diminishing, he said, and added the cotton output in India was also less than expected which is why prices were already rising.
Haq wasn’t surprised, as there are reports of cancelling of cotton contracts between traders on both sides. However, it was a surprise for importers that the Federal Government’s permits were not valid with the date of issuance. An upward trend in cotton prices was being witnessed following depreciation of rupee value against the dollar and this scenario was not favourable for importers and the textile industry as they could face shortage of the commodity in the coming days.
