Fearing damage to their business, cotton ginners have asked the government to slap regulatory duty on cotton import from India in order to protect farmers and the ginning industry as the new Indian cotton export policy may lead to excessive shipments and bring down prices in the domestic market.
In a statement issued on Saturday, Pakistan Cotton Ginners Association (PCGA) ex-executive member Ihsanul Haq said the Indian cotton export policy might negatively impact cotton prices in Pakistan as Delhi did not place any ceiling on exports. According to the policy, any person or firm may export unlimited quantity of cotton using various names.
In support of his demand for the regulatory duty, he cited the example of sugar imports from Pakistan on which India had increased duty by 100% to protect its farmers.
“Pakistan should also impose regulatory duty on cotton import from India, so that cotton farmers can get a better price for their produce.” In this way, the ginners could also be saved from economic exploitation, Haq said.
According to the cotton export policy for 2012-13, announced by the Indian Ministry of Commerce, such exporters who have exported more than 30,000 bales of cotton in the year 2011-12 will be eligible for maximum export of 30,000 bales whereas the exporters who exported less than 30,000 bales will be eligible for maximum export of equivalent number of bales in the year 2012-13.
The exporters who have not exported cotton in the year 2011-12 will be eligible for maximum export of 30,000 bales, the policy says.
Published in The Express Tribune, December 2nd, 2012.