While the withdrawal of MFN (Most Favored Nation) status by India and the 200pc hike on goods imported from Islamabad has put an end to the import of cement from Islamabad, cotton yarn and ginned cotton exports to the neighboring country may remain impervious of the current turmoil. A shortage in domestic output and the favorable cotton market provided by India will keep Pakistan a key buyer of Indian cotton
Mr Atul Ganatra, president of the Cotton Association of India told, “Cotton export is unaffected so far and we don’t expect Pakistan to pose hurdles as their cotton industry requires raw material from India. India is the most accessible and price-lucrative market for them. Pakistan is expected to import around one-million bales of cotton from India in the current financial year.”
He said, “It will be detrimental for Pakistan as it faces a shortage in domestic output of the natural fiber and growth of its textile industry will be hampered. It has happened in the past, but we don’t see the possibility of such a step by Pakistan as it will raise the cost of raw material for their local industry.” As per exporters the cotton export to Pakistan will continue even in the event of increase in duty as the consignments would be routed via ports in Dubai and Singapore.
