Cotton and sugar sectors welcome Pakistan’s decision to allow imports from India

Pakistan domestically produces 50 lakh bales (each bale weighing 170 kg of ginned pressed cotton) of its annual demand of 1.5 crore bales. A major importer, Pakistan sources its cotton mostly from USA and Brazil, although it takes longer for the raw material to reach from these countries. Pakistani textile manufacturers have been demanding that imports from India be allowed, as it would be a cheaper option for them.

Arvind Jain, vice-president of Khandesh Gin/Press owners and Traders Welfare Association, said if the Indian government allows exports, they can export around 10 lakh bales of cotton to Pakistan in the next three months. “Our produce can reach Pakistan within three days. We also have the cost advantage as Indian candy (376 kg of ginned pressed cotton) is at present retailing at Rs 46,000 as against the prevalent price of Rs 52,000-55,000 price in international markets,” he said.

If export to Pakistan is allowed, India can start the next October- September cotton season with about 45 lakh bales. “In such a situation, cotton growers can expect above MSP prices easily right from the start of the season,” said Jain.

Pakistan normally imports 4-5 lakh bales from India, but a drought and attack of locusts in the neighbouring country has necessitated more imports.

Pradeep Jain, founder-president of the Association, pointed out that India has till date exported 40 lakh bales and can end up exporting 60 lakh bales for the whole season. “Ginners from Maharashtra are also planning to directly export from here,” he said

The sugar sector has also welcomed the news of Pakistan allowing sugar imports from India.

Abinash Verma, director general of Indian Sugar Mills Association, said Indian millers have so far inked export orders of 45 lakh tonnes of the target of 60 lakh tonnes. Most of the sugar produced in India has gone to markets in Indonesia, Middle East, East Africa, Sri Lanka, Afghanistan and Bangladesh.

In case the Pakistan market is made available, India can easily fulfil its export target for the current year also. If India fulfils its sugar export target, the country can end up with an opening stock of 90 lakh tonnes, which will not weigh down the economics of the sector.