Pakistan Bans Indian Cotton Exports Via Attari

Market News

Pakistan Bans Indian Cotton Exports Via Attari

Recommendation of Pakistan senate panel to ban import of cotton lint from Attari could spell doom for exporters in the region and disturb the trade balance between the two nations, say traders and commission agents. Reacting to the senate's Standing Committee on National Food Security and Research, they pointed out that it would also lead to loss of foreign exchange for India. According to news reports from across the border, the senate committee has asked the Pakistan government to impose ban on cotton imports from India via Attari border as "it was detrimental to the interest of domestic cotton growers".

Indian exporters wonder why the committee had sought ban on import of cotton from Attari border only, even as a major chunk of the import in Pakistan came via Mumbai ports. "There are big corporate houses in Karachi, which want control of the trade. Traders in Lahore or those who import cotton bales from Attari do business on smaller margins which hampers the interest of the bigger Karachi lobby," they allege. Normally two to three lakh bales of cotton were exported to Pakistan, but during the 2015-2016 the volume went up to more than five lakh bales, valued at around Rs 900 crore. Cotton is among top three commodities exported to Pakistan from Attari border. The ban on imports of Indian cotton come at a time when Pakistan has registered a 30% decline in its cotton output. Majority of Indian exporters supplying cotton to Pakistan are from Andhra Pradesh, Maharashtra, Gujarat & Karnataka.