960414

APTMA seeks govt

consent to import

cotton from India

RECORDER REPORT

KARACHI: The All-Pakistan Textile Mills Association (Aptma) has asked for permission to import cotton from India - where prices range between 70 cents to 75 cents per lb - to avert a crisis which may prove disastrous to the local textile industry.

In a letter addressed to Chaudhry Ahmed Mukhtar, Federal Minister for Commerce, Anwar Ahmed Tata, Chairman of Aptma has said: "The availability of cotton in the local market has deteriorated and the rising prices of cotton are a clear signal of another cotton crisis for the local textile industry".

Tata has said that in addition to permission to import cotton from India, there is need to withdraw the regulatory duty on import of cotton, immediate suspension of further shipments of cotton, and review of the cotton export policy. "Now, and for the next year, no cotton may be allowed to be exported unless and until the requirements of the local textile industry are met", he added.

The letter, copies of which have been endorsed to the Secretaries of Commerce and Finance Ministries and to the Central Board of Revenue, Chairman, further says: "We had expected a bumper crop and estimated the cotton production at around 10.5 million bales. However, it is now clear that the production will not exceed 10 million bales.

"Due to sufficient availability of cotton, local textile mills became serious purchasers in the local market and it is estimated that we would need nine million bales for home consumption".

Strengthening his arguments in favour of importing cotton from India, Tata in his letter has said "that 2.5 million bales have been registered for export and out of these 1.6 million bales have been physically shipped, whereas, if the situation is viewed as a whole the total cotton crop 1995-96 is around 10 million bales, export registration is 2.5 million bales, mill purchase is around 7.5 million bales, requirement of mills for 1995-96 is around 8.5 million bales, and therefore the resultant shortfall is about one million bales".