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India-Pak cotton trade may not be hit by import duty hike

21
Feb '19
India-Pak cotton trade may not be hit by import duty hike
India’s export of ginned cotton and cotton yarn to Pakistan may remain unaffected after the former last week hiked the customs duty on all goods imported from the latter to 200 per cent with immediate effect. Pakistan will continue to buy Indian cotton due to domestic output shortage and the favourable cotton market provided by its neighbour, experts feel.

Cotton export is unaffected so far and Pakistan is not expected to pose hurdles as their cotton industry requires raw material from India, the most accessible and price-lucrative market for them, Atul Ganatra, president of the Cotton Association of India, told a top Indian business daily.

Pakistan is expected to import around one-million bales of cotton from India in the current fiscal, he said.

The cotton export to Pakistan will continue even if Pakistan hikes the duty as the consignments would be routed via ports in Dubai and Singapore, Exporters feel. (DS)

Fibre2Fashion News Desk – India


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