Feedback Here

fbook  tweeter  linkin YouTube
Global contents also translated in Chinese

India likely to end cotton exports to Pakistan

Following talks of withdrawal of the Most Favoured Nation (MFN) status to its neighbor, India is likely to stop $782-million worth of cotton exports to Pakistan with exporters keen to divert shipment to other cotton scarce countries. Way back in 1996, India had granted MFN status to Pakistan to enhance trade between the two nuclear neighbours which Pakistan never reciprocated.

A meeting, chaired by Prime Minister Narendra Modi, was scheduled to be held on Thursday in New Delhi to reconsider MFN status that Pakistan enjoys for around 20 years. But the meeting got postponed and is now rescheduled for next week. According to trade sources, India exported around two million bales of cotton to Pakistan in 2015-16. This constituted over 10 per cent of overall exports of the natural fibre from India. Pakistan’s cotton imports from India jumped sharply in 2015-16 due to crop failure there.

While cotton exports from India attract zero duty due to surplus availability of the natural fibre in Pakistan but India’s neighbouring country gets a favourable treatment under the MFN status to which Indian exporters prioritise shipment. However, with India most likely to withdraw MFN status to Pakistan, Indian cotton exporters are readying to divert their cotton shipment to other countries including Bangladesh, China, Taiwan among others.

Going a step further, Indian cotton traders have decided not to participate in the 75th plenary meeting of International Cotton Advisory Committee (ICAC). The meeting is scheduled to be held from October 30 to November 4 in Islamabad.

 
LATEST TOP NEWS
 


 
MOST POPULAR NEWS
VF Logo