20000115

Indian ban may help Pak cotton get higher price elsewhere

RECORDER REPORT

KARACHI: The cotton exporters have expressed hope that the left-over cotton bound for India, if sell to other countries, will fetch higher prices.

It was observed in the meeting called by the Karachi Cotton Association to review the situation after India's refusal to import Pakistani cotton.

The exporters felt relief as the cotton gained some weight in the last couple of weeks.

"We sold India at the rate of 32-34 cents per pound. Now we can sell at 37-38 cents per pound to Indonesia, Bangladesh and other countries," said exporters.

The exporters, who were ready to go for arbitration against the Indian decision, dropped the idea.

However, they rejected the Indian allegation of virus in the Pakistani cotton.

The meeting maintained that the decision was a politically motivated and against the international law and ethics.

India had made contracts for 2,50,000 bales and about 40,000 bales were already shipped to that country.

"The American cotton (prices) has improved the international market of cotton. American cotton is available at 54 cents per pound while it was 48 cents per pound just a week ago. This improvement has put us in a better position," said a cotton exporter.

However, the cotton brokers said that the local market would show some fluctuation in the prices, most probably prices may drop slightly.

A press release issued by the KCA says: "An emergency meeting of the exporter-members of the Karachi Cotton Association noticed with great concerns that through a Notification issued by the Government of India, import of Pakistani cotton into India has been banned.

"It was reiterated in the meeting that Pakistan cotton has been exported to various countries including India for the last 50 years after proper fumigation and no complaint of any bacterial, viral and fungal disease has ever been received from any importing country of the world including India.

"The meeting noted with concern that through this measure, a serious situation has been created whereby international contracts have been frustrated which is against the interest of the free trade and sanctity of international contracts."