Cotton export orders in jeopardy

TDAP fails to register raw cotton export contracts.

Zafar Bhutta July 28, 2012


Pakistan Cotton Ginners Association (PCGA) fears that Pakistan may lose raw cotton export following the Trade Development Authority of Pakistan’s (TDAP) inability to start registration of export contracts.

Talking to The Express Tribune, Pakistan Cotton Ginners Association Executive Member Ihsanul-Haq said that TDAP had not started registration of raw cotton export contracts which may result in Pakistan losing opportunity to export to destinations including India.

“We were expecting that cotton exports will jump after early record production,” he said adding that delay in export had also caused lowering prices of commodity in local markets.

“Farmers were also upset due to low cotton prices due to delay in export of raw cotton,” he said. Farmers are expected to lean toward sowing another crop due to the delay in payment and low margin.

He said that as per reports some Pakistani exporters had finalised contracts of 1,000 tons of cotton export to India and are waiting for the registration.

“The delay in registration of cotton yarn exports will not only block exports to India but will affect new contracts as well,” he said adding that there is no ban placed on export of cotton to India by Commerce Ministry but TDAP says that Trade Policy 2009 has become ineffective and therefore registration could not start.

He appealed to Ministry of Commerce to direct TDAP to start registration of contracts so that export could start once again. “Cotton export will not only bring foreign exchange but stabilise prices in the local market and encourage the grower to grow the crop,” he added.

15 million bales is the cotton production target for fiscal 2012, 1% higher than last year despite floods and severe rains in Punjab and Sindh.

Pakistan earned $ 425 million from cotton export while $320 million was spent on importing it in financial year 2012, according to media reports.

Published in The Express Tribune, July 29th, 2012. 


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