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India bans Pakistani cotton import

SHAHID IQBAL

KARACHI: India has put immediate ban on the import of raw cotton from Pakistan alleging that the cotton contains virus, causing grave concerns for Pakistani exporters.

"There shall be no import of any cotton from Pakistan into India as the presence of cotton seeds of exotic origin, of dried leaves and their stalks in the imported consignment carry exotic strains of destructive bacterial , viral and fungal diseases which are virulent under Indian climatic conditions," a message sent by the Ministry of Agriculture of India to the Karachi Cotton Association said.

The message, which carries the circular of the Indian Ministry of the Agriculture, was issued on January. 11 and sent to KCA on Thursday.

The Karachi Cotton Association has called an emergency meeting to assess the consequences of the Indian decision.

India was the single biggest buyer of Pakistani cotton for the current season. India made contracts for about 250,000 cotton bales to import from Pakistan.

So far, out of 250,000 only 40,000 bales have been shipped to India. The exporters say that the rest of the raw cotton belonging to the Indian contract, has no future.

The total export registered with the Export Promotion Bureau is about 375,000 bales. The exporters believe that in reality, contract of over 500,000 bales have been signed.

"This a politically motivated decision of the Indian government. Despite the fact that Indians were getting a benefit of over Rs. 500 to Rs. 700 per maund of raw cotton, they banned Pakistani cotton," a cotton exporter said.

Pakistani cotton is available at Rs. 1,100 to Rs. 1,300. In India the price is between Rs. 1,600 to Rs.1,700 per maund.

The exporters also rejected the Indian allegations that Pakistani cotton contains virus.

"The allegation has no weight as we are already exporting it to Indonesia, Thailand, Philippines, Bangladesh and other countries. Secondly, we fumigate our cotton before shipping it to any country," exporters said.

It can be tested in the country. "But the Indians shown their shrewdness by saying that the bacterial, viral and fungal disease are virulent under Indian climatic condition," the exporters said.

The Ministry of Foreign Affairs and the Ministry of Commerce have been informed about the new development.

"The decision has grave impact for Pakistan as other cotton importing countries may review their contracts after the Indian decision. Their decision may damage our international reputation," exporters said.

On the other hand, the local market will have to face a jolt of over 200,000 bales and the prices would certainly be affected.

"The sudden presence of 200,000 bales in the local market is highly depressive for the market already under pressure," a cotton broker said.

The exporters said that KCA might decide to go for arbitration against the Indian decision.

S A Aziz Shah adds:

Dr. Zafar Altaf, Secretary Food and Agriculture, who on Thursday was in the office of Pakistan Central Cotton Committee, Karachi, when asked to comment on the Indian action said that India being a member of World Trade Organisation cannot administratively put such a ban arbitrarily but would have to prove its action technically.

Explaining his point of view, he quoted the example of the case of made cow meat in Europe in which WTO exonerated UK from the allegations. (Till now however, France has not lifted ban disregarding the decision of WTO).

He said that on reaching Islamabad he would take up this matter and take all necessary steps to safeguard national interest.