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'India will suffer huge loss from ban on Pak cotton'

RECORDER REPORT

ISLAMABAD: India would suffer huge loss from ban on cotton export from Pakistan as it would have to purchase cotton from international market at much higher rates, said the Additional Secretary, Ministry of Commerce, Mohammed Sulaiman, here on Tuesday at press briefing.

He said that now the value of raw cotton has jumped up to 46 cents per pound in the international market from previous 35 cents per pound, when India put a ban on raw cotton import from Pakistan.

"It is a good news that the Trading Corporation of Pakistan has signed contract for the export of 1,000 bales of raw cotton at the rate of 46 cents per pound, while there is a strong indication of further increase in the international price of this commodity," he said.

World cotton prices started upward journey from the day India announced the ban which proved a blessing for Pakistan, said Sulaiman.

"Now we do not need to approach the World Trade Organisation (WTO) against Indian ban as this decision has been very fruitful for our country and exporters," he added.

It is not clear as to how much foreign exchange would be earned through the export of raw cotton, but the earning would be much higher following strong improvement in the world prices of raw cotton, he said.

The TCP has purchased one million bales that would be exported in the due course.