Indian Association Wants Free Trade for Cotton
June 27, 2016 By Dr. Seshadri Ramkumar
Mumbai-based Cotton Association of India (CAI) wants free trade in cotton.
Reacting to media reports from Pakistan about the opposition from All Pakistan Textile Mills Association (APTMA) to export cotton from Pakistan to India, Dhiren Sheth, president of CAI, urged the Government of Pakistan not to support the call for an export ban by APTMA.
CAI – with over 400 members representing all walks of cotton trade such as merchants, brokers, and spinning mills – is opposed to all measures that negatively affect free trade in cotton.
In a statement, Sheth expressed that if the issue for APTMA was the elimination of import duty on cotton, it has to be addressed directly as a separate issue. CAI has expressed strongly that it is opposed to measures such as import duty that hurt free trade and has warned about the serious repercussions on the cotton trade and textile industry in Pakistan and India if APTMA’s push becomes a reality.
A source very familiar with the situation stated that although India is a leader in cotton production and is expected to export about 6-6.5 million bales (170 Kgs) this season, India needs to import little quantities of short staple from Pakistan and long staple from the United States, Australia and Egypt to cater to the needs of its diverse spinning sector. In commenting on the end-uses of short staple cotton imported from Pakistan, the source said those cottons are spun into yarns that go to developing industrial application products such as coveralls and wrapping bags.
According to CAI, Pakistan has imported over two million bales of cotton from India this season, as it needed due to the failure of its crop at that point of time.
In addition to the need based on specific end-uses for cotton from Pakistan, India wants to import cotton from Pakistan due to the current tight supply situation for its domestic mills.
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