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Cotton importers enter into deals with India
13
Oct '10
Importers from Pakistan have entered in to a deal with the Indian exporters for importing more than one million bales of cotton to fulfill its domestic requirements. Cotton imports from India had stopped due to the restriction imposed by the Indian government, which had stopped the allocation of cotton export license.

On 28th September, 2010, the Indian government permitted the export of 5.5 million bales of cotton from 1st October, 2010. The textile industry in Pakistan was waiting for the prohibition on the export of cotton to be lifted by the Indian government. Once the announcement was made by the Indian government, the Pakistani spinners had placed an order of more than one million bales of cotton to the Indian exporters.

At present, Pakistan is confronted with the problem of cotton scarcity which accounts to 3.5 million bales. The country's cotton production is expected to touch the mark of 12.5 million bales as against its consumption, which is expected to be around 16 million bales. The increase in prices of cotton in the global market is anticipated to make the import of cotton more expensive, which might have a direct bearing upon the prices of cotton yarn in the country.

Fibre2fashion News Desk-India


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