HAMID WALEED
LAHORE (December 04, 2010) : The intervention of the Ministry of Textile has propelled Indian government to allow materialising deals of 300,000 cotton bales, out of 1.2 million bales contracts signed by Pakistani spinners with Indian cotton exporters with Pakistani spinners. Sources said that the Indian government has agreed to let 300,000 cotton bales exported to Pakistan's spinning industry, which is facing a shortage of some 3 million bales.
The Indian government had banned cotton export in view of unprecedented world-wide price rise to save the productivity of domestic industry. This ban led to panicky situation in Pakistan's spinning industry, as the Indian exporters backed out of their commitment after entering into legal agreements. Accordingly, Pakistan textile industry approached the government to intervene and induce the Indian government to honour the contracts.
However, sources said, the Indian government has agreed to let export only 300,000 cotton bales to Pakistan. Meanwhile, India also capped exports of cotton yarn at 720,000 tons in the year from October 1, which expedited the fears regarding global rise in cotton yarn prices. Textile experts commented that international prices for cotton yarn would shoot up with Indian restrictions on exports, as it is currently the largest supplier of cotton yarn in global markets.
The Indian government had banned cotton export in view of unprecedented world-wide price rise to save the productivity of domestic industry. This ban led to panicky situation in Pakistan's spinning industry, as the Indian exporters backed out of their commitment after entering into legal agreements. Accordingly, Pakistan textile industry approached the government to intervene and induce the Indian government to honour the contracts.
However, sources said, the Indian government has agreed to let export only 300,000 cotton bales to Pakistan. Meanwhile, India also capped exports of cotton yarn at 720,000 tons in the year from October 1, which expedited the fears regarding global rise in cotton yarn prices. Textile experts commented that international prices for cotton yarn would shoot up with Indian restrictions on exports, as it is currently the largest supplier of cotton yarn in global markets.
No comments:
Post a Comment