India's cotton exports to slump as Pakistan trims purchases
Pakistan, the world's third-largest cotton consumer, usually starts importing from September, but exporters said the number of inquiries had slowed to a trickle in the last few weeks. Photograph: (AFP)
India’s cotton exports in the 2016/17 year that started on October 1 are likely to fall as its neighbour and top buyer Pakistan is set to trim purchases, industry and government officials have said, news agency Reuters reported.
Pakistan is likely to import 1 million to 1.5 million bales in 2016/17, down sharply from 2.7 million bales a year earlier, India's textile commissioner Kavita Gupta told reporters on Monday.
This would mean a 28 per cent fall in exports as compared to last year.
Gupta said the cut in imports by Pakistan are due to the rising hostilities and improvement in its own production. The industry officials said it is due to the rising tensions between the two South Asian countries.
"Pakistan still needs to import, but Pakistani buyers are turning to Brazil and the US," said Pradeep Jain, a ginner based in Jalgaon in the western Indian state of Maharashtra.
Pakistan, the world's third-largest cotton consumer, usually starts importing from September, but exporters said the number of inquiries had slowed to a trickle in the last few weeks.
Tensions between the two neighbours have been on the rise in the past few months. On September 18, an Indian Army base in Uri was attacked by Pakistani militants and as many as 19 Indian soldiers were killed in the attack.
About 10 days after the attack, Indian Army said it retaliated by carrying out ‘surgical strikes’ in Pakistan-administered Kashmir, a claim that was denied by Pakistan.
(WION with inputs from Reuters)