Ban on Cotton Exports to Stay: Indian govt .

Indian government has decided not to lift ban on cotton export and has not give any specific date either in this respect, whereas the said ban was to be lifted on October 1, 2010.

Members of Pakistan Textile Mills Association (APTMA) and Pakistan Yarn Merchant Association (PYMA) expressed deep concerns over the act of Indian Commerce Ministry and term it "Unjustified step towards international importers who will face losses worth billions".

Member APTMA Mohammad Yasin Saiddik and member PYMA Khalid Rafi said the Indian exporters are in habit of not to honour commitment of importers and they had already cancelled 550,000 bales export orders to Pakistani on the back of higher lint prices in international market

Cotton imports from India would now cost Rs 9,300 per maund compared with domestic market prices of Rs 7,100 per maund currently, lint analyst Shakeel Ahmad said.

He said the Indian government and cotton traders by ignoring all international trading norms and condition suspended the export to Pakistan.

Ahmad said, "Cotton prices have shot up eight percent in about two weeks in the country propelled by Indian act of stopping export of the cotton to Pakistan and other countries".

In international market New York cotton October futures closed at $1.05 per pound last week while Indian prices also shot up to Rs 9,300 per maund, he added. India is expected to harvest a bumper crop of 32 million bales this season and there were hopes that Pakistan would go for imports from Delhi given the price advantage.

Ahmed said Indian dealers have been constantly increasing prices of cotton and now they are demanding above 97 cents per pound. Earlier, they were selling cotton for 57-58 cents per pound.

"This has created panic in the domestic market which was otherwise calm when seen in the domestic perspective," he added. The China buying spree also contributed to the flare-up in cotton price in the international market, though some correction has been noticed in New York Cotton Futures.

India, the world's 2nd largest cotton exporter would allow exports after local consumption at 5.5 million bales in the next marketing year starting October 1. The US, the largest producer of cotton in the world, has sold 90 percent of its crop and has nothing significant to offer to Pakistan as it would cost 8,600 per maund to Pakistani importers, he said. Despite late harvest, the output in Xinjiang is expected to reach 3.1 million tonnes in 2010-11, against 3.07 million tonnes last season, according to the investigation report by China Cotton Association. The ICAC monthly update on the world S/D estimates that world production in 2010-11 was projected at 115 million bales down 1 million bales from the August estimate.

World consumption was pegged at 115 million bales up a 1 million bales from a month earlier. In the domestic market, the supply of cotton is smooth with Sindh and is expected to come out with a good harvest. Prices on the ZCE were down 30 yuan in September and up 225 yuan in the November contracts in over-night books.

Source : dailytimes.com.pk