Indian ban on cotton exports leaves Pak millers fuming

NAGPUR: The cotton politics in India has left the Pakistani textile sector sulking. The recent ban on cotton exports from India is a bane for the Pakistani textile sector, while cotton-growers there are getting a higher price for their produce. However, it's the other way round in India, where the ban will hit farmers but benefit the industry.
In Pakistan, cotton prices have firmed up since supply from India has ceased, and even consignments booked earlier too will not reach Pakistan now.With business hit, the Pakistani textile lobby has come down hard on their Indian counterpart, which reportedly lobbied for the export ban.
The ban has been implemented to please the Indian textile sector, but would harm the farmers' interest. Claiming moral high ground, the Pakistani textile manufacturers say they would never lobby for a similar move in their country, and would rather protect their farmers' interest.
Pakistan is a net importer of cotton. So, a ban in an exporting country pushes up the prices there. This directly hits the textile industry, which has to pay a higher price for the raw material. Pakistan is the fourth largest cotton producer of the world. But there is two-way trade of the commodity between India and Pakistan.
The export ban in India has been flayed by the All Pakistan Textile Millers Association (APTMA). APTMA has always opposed a similar move in Pakistan, Mohsin Aziz, president of the association, told TOI over telephone from Peshawar.
This is the second time there has been a default in supplies from India, said Aziz, referring to last year's move to impose curbs on exports as the season ended. "If this continues, India will be considered an unreliable trade partner," he said.
There have been demands for a similar ban in Pakistan by bedcover and apparel manufacturing associations, but the textile millers have not backed them. Aziz says the 'Pakistani textile sector is not as selfish as its Indian counterpart'. He can afford to say that, since cotton from India lowers prices in Pakistan.
"As a spinner, an export ban at home would indeed be profitable for me, since the price of cotton, which is the raw material, will come down due to the increased domestic supply. However, we feel that farmers are equal partners in the business. They should not be denied of an opportunity to get a higher price if they have an alternative in the global market," said Aziz.
At the same time, APTMA has opposed any government intervention, like buying cotton at MSP, when the prices are low. However, citing the fact that the association has not pressed for any support for itself, Aziz said they believe in free trade. Aziz claimed that there have been times when there was an acute shortage of cotton in Pakistan, but the textile lobby did not press for any ban on exports.
Although Aziz could not immediately cite exact figures for cotton imported from India or the overall production figures, he said shipments from India have been relatively less due to a bumper crop at home. However, there have been reports of a considerable number of pending orders which may not be delivered due to the ban. Cotton prices in Pakistan are ruling at Rs 6,000 per 50kg, Aziz said as a bullish trend is seen after the export ban in India.