Pakistan, Bangladesh Press India to Uphold Cotton Contracts
June 10, 2010 The Economic Times of India
Pakistan and Bangladesh have demanded that the contracts for supply of cotton made by Indian growers before exports were suspended should be honored. In separate letters to the Indian government, they have also said that future supply of cotton to the countries should not be disturbed.
India has now put cotton on the restricted list and its exports can only be allowed through licenses issued by the government.
“The letters by Pakistan and Bangladesh have created quite a stir within the government. We believe that the commerce department is now looking at what could be done about the old contracts and how much exports could be allowed,” the official said.
The textile ministry had suspended exports of cotton on April 19 following complaints from the domestic textile industry of a 20 percent rise in cotton prices since October last year, which was increasing cost of production.
The commerce ministry subsequently lifted the suspension on May 21, after cotton farmers and states like Gujarat and Maharashtra protested against it, but allowed its exports only against licences.
However, there were several contracts that exporters had entered into before the suspension of exports last month, many of them with buyers in Pakistan and Bangladesh, the future of which remains unresolved.
(Story found in original format here.)
GET THE NEWSLETTER TODAY!
