Indian Restrictions on Cotton Exports to Pakistan.

ISLAMABAD: Government of Pakistan is using diplomatic channels to compel the Indian government to lift restrictions and allow export of 1.5 million cotton bales to Pakistan’s textile industry, Textile Minister Rana Muhammad Farooq Saeed Khan told Daily Times.

The government has asked Pakistan’s Higher Commissioner posted at New Delhi as well as taken up issue with Indian High Commissioner posted at Islamabad to facilitate the cotton export from India to Pakistan as per understanding reached between Pakistani importers and Indian exporters, he added.

Pakistan’s textile industry had opened letter of credit for import of cotton from India — however, the Indian government has placed a restriction on Indian exporters for export of cotton to Pakistan’s importing firms.

“What we are saying to Indian authorities is that — it’s a matter of credibility and Indian authorities should honour the understanding reached between the private sector of the both countries,” the minister added.

Pakistan’s textile industry — keeping in view the huge losses to the cotton crop due to the floods — had approached Indian exporters for import of 1.5 million bales of cotton to bridge the demand and production gap.

According to the official estimates, the cash crop of Kharif Season, cotton is likely to be reduced by 18.5 percent to 11 million bales against the production target of 14.11 million bales set by the government.

The recent devastating floods and heavy rains severely damaged the cotton crop in the country. Flood affected area in Punjab is estimated at 1.415 million acres (1415.6 thousand acres) while in Sindh it is about 303.2 thousand acres. Total area damaged is calculated about 1.719 million acres (1719.8 thousand acres).

About 1719.7 thousand acres of cotton crop is estimated to have been affected with the floods and the remaining 6035.9 thousand acres of crop is estimated to be safe out of the total sown area of 77.59.6 thousand acres. The cotton crop production is estimated at 11.5 million bales by considering crop damage due to floods in cotton tracts of Punjab and Sindh against the potential production of 13.860 million bales under the current year sown area.

Apart from flood damages, sources further said that pest attack was also witnessed in the second week of July 2010 and continued its growth. However, the incidence of Cotton Leaf Curl Virus (CLCV) remained higher than previous year up to 62.37 percent. Early sown Bt varieties in Punjab started yielding in the month of June and seed cotton arrivals started arriving at the cotton ginneries in Punjab on the first week of July. Simultaneously seed cotton arrivals started arriving at ginneries in lower Sindh, i.e. Sanghar and Mirpurkhas districts. The pace of cottonseed arrival remains milder in Sindh and faster in Punjab. Prior to floods more than 0.4 million cotton bales had arrived at the ginneries both in Punjab and Sindh.

The government has fixed the second cotton intervention price for 2010 11, at Rs1465 per 40 kg prevailing market prices of seed cotton (phutti) are as, Hyderabad, Mirpurkhas, Sanghar have Rs 2800, Mian Channu Rs 2200 3175, Vehari Rs 2900 3200, Burewala Rs 2800 3300, Rahim Yar Khan Rs 2400 3027, Sahiwal Rs 3000  3200 and Khanewal Rs 2900 to Rs 3150 per 40 kg.

At global level, the cotton production estimates are 115.9 million bales for the year 2010 11 against 100.41 million bales production last year. Main producer at world level is China with production estimates at 32.5 million bales, India 25.4 million bales, USA 18.7 million bales — while in the case of Pakistan, estimation is 10 million bales instead of 11 million bales claimed by the ministry of food and agriculture. Brazil is likely to contribute 6.8 million bales cotton crop, Uzbekistan 4.7 million bales, and other contribution by small countries would add about 17.7 million bales. The International Cotton Advisory Committee, Washington in August 2010 forecast about 114.4 million bales cotton demand at global level.

From cotton crop point of view, the most affected districts in Sindh are; Badin, Dadu, Ghotki, Hyderabad, Jamshoro, Khairpur, Larkana, Mirpur Khas, Mitiari, N. Feroze, Nawabshah/Shaheed Benaizer Abad, Sanghar, Sukkur, Tando Allahyar, Tando Mod Khan, thatta and Umerkot.

In Punjab, districts that suffered damage to cotton crop include R.Y Khan, Bahawalpur, Muzaffargarh, Khanewal, Multan, Rajanpur, DG Khan, Layyah, Sahiwal, Jhang, Choinot, and others.

Source : dailytimes.com.pk