Pakistan has taken U turn and declined to import cotton and cotton yarn from India, just a day after Pakistan’s Economic Coordination Council (ECC) had allowed the import of cotton and cotton yarn from India.
Also Read: Pakistan lifts ban on cotton import from India
Pakistan’s textile industry is upset with this decision of the Government as it would send a negative message to foreign buyers; cotton yarn was not available in Pakistan and now prices of cotton yarn have increased after the decision.
The Federal Cabinet, headed by Prime Minister, rejected the proposal of a high-powered committee to import cotton from India, with Foreign Minister Shah Mahmood Qureshi asserting that there can be no normalisation of ties until India reverses its decision to revoke the special status of Jammu and Kashmir.
In the current year, Pakistan faced a 40 per cent plunge in cotton production and if it was compared with 15 million bales in 2014-2015, then the drop was 50 per cent this year.
India is the world’s largest cotton producer and second-largest exporter. According to industry body CIA, India’s cotton exports jumped over 40 per cent to 10 million bales (of 170 kg each) in the 2018-19 marketing year on strong overseas demand, especially from China.
