ISLAMABAD-The government is considering several options to import cotton from different countries including India to overcome the domestic shortage.
The government may import cotton from Afghanistan, Central Asian Republics (CARs) and India to overcome the shortage in the country. An official of the Ministry of Commerce informed that Economic Coordination Committee (ECC) of the Cabinet is likely to discuss the option of importing cotton in next week. However, he said that government might allow cotton import from India, which is the cheapest option to fulfil the demand and supply gap.
The official further informed that Pakistan is expecting severe shortage of cotton in ongoing financial year 2020-21. Cotton production target was 10.89 million bales, however, Cotton Crop Assessment Committee (CCAC) meetings had projected that cotton crop would be in range of 7.7 to 8.59 million bales. Therefore, in order to bridge the gap between local production and demand it is imperative for Pakistan to import cotton.
Meanwhile, Chairman of National Business Group of FPCCI, President Pakistan Businessmen and Intellectuals Forum and All Karachi Industrial Alliance, and former provincial minister Mian Zahid Hussain on Friday said cotton scarcity and hoarding has become a threat to the largest export sector.
Cotton imports from Afghanistan and central Asia should be allowed via Thorkhum while import from India must be considered in the national interest, he said.
Mian Zahid Hussain said that India is the cheapest and quickest option to fulfil the demand and supply gap which has increased prices by 40 percent in two months, threatening the textile sector.
Mian Zahid Hussain said that quick imports through land route is the best option as it will also discourage hoarding therefore imports via Thorkhum should be allowed for 15 months while imports from India for the next four to six months should be considered in line with the demand of different textile associations.
Talking to the business community, the veteran business leader said that why can’t we import cotton from India while pharma products are already being imported.
He said that local cotton production has been falling for the last fifteen years but it has made headlines during the last two years as farmers are switching to other crops, while concerned authorities are not discharging their duties.
He said that the textile sector needs 12 million bales annually and they would need to spend billions to bridge the shortfall but it is the only available option to fulfil their commitments.
Textile is the biggest employment provider sector which should be helped to overcome problems in the national interests, he demanded.