Pakistan Stops Indian Cotton Imports For Non-Compliance Of Bio-Security Standards

Market News

Pakistan Stops Indian Cotton Imports For Non-Compliance Of Bio-Security Standards

The Department of Plant Protection (DPP) has 'halted' import of cotton and other agriculture commodities, including vegetables, via the Wagah border crossing and Karachi port from India and issuing permits for future imports.

Sahabzada Imran Shami, director general of the DPP, a subordinate department of the national food security and research ministry, said, "We have not stopped cotton imports from India. It has just been halted over reports that the Indian exporters are not meeting our bio-security conditions. We're looking into these reports and will lift restriction on cotton imports if our apprehensions are proved wrong. Yes, we have stopped import of tomatoes and other fresh vegetables in order to protect our farmers. We have enough tomato and other vegetables stocks, which we import from India only in case of shortages in the domestic market.

Nevertheless, he made it clear that only those cotton consignments would be allowed to enter Pakistan through surface or sea routes where importers had already secured permits from his department and carried phyto-sanitary certificates. "Our cotton consignments are not being allowed to enter Pakistan through Wagah and Karachi for reasons known to the ministry but cheaper, subsidised Indian yarn is being brought in without any let or hindrance. At least 11 trucks of Indian yarn entered Pakistan last week when the department stopped cotton consignments from coming to this side of the border," informed sources.

"We have been told that 'Indian imports are being slowed down' because of rising tensions between the two sides across the LoC," a Pakistani textile manufacturer claimed. "As a consequence, our consignments for which letters of credit had been established and import permits issued by the department of plant protection are stranded on the other side of the Wagah border."

He said the suspension of cotton import from India would create a problem for the textile exporters as the truncated domestic crop target of 11.25 million bales for this year appeared difficult if not impossible to meet. "The industry requires 14 million bales. We will still be short by three million bales of cotton even if the crop target is achieved. The cotton shortages after ban on Indian imports would lead domestic prices to jack up at the expense of exports." Pakistan had imported 2.7 million bales of cotton (a bale is 170kg), about 40% of India's total cotton exports in 2015-16, due to crop failure that wiped off 0.5% of the Pakistan's GDP (gross domestic product) growth. The industry is expecting to import 2 million bales this year.