AMRITSIR: Recommendation of Pakistan senate panel to ban import of cotton lint from Attari could spell doom for exporters in the region and disturb the trade balance between the two nations, say traders and commission agents. Reacting to the senate’s standing committee on national food security and research, they pointed out that it would also lead to loss of foreign exchange for India.
According to news reports from across the border, the senate committee has asked the Pakistan government to impose ban on cotton imports from India via Attari border as “it was detrimental to the interest of domestic cotton growers”.
When contacted, customs clearing agent Jaspal Singh asked why the committee had sought ban on import of cotton from Attari border only whereas a major chunk of the import in Pakistan came via Mumbai ports.
“There were big corporate houses in Karachi, which wanted control of the trade. Traders in Lahore or those who import cotton bales from Attari do business on smaller margins which hampers the interest of the bigger Karachi lobby,” he alleged.
Customs department deputy commissioner Paramavtar Singh Gill, who is posted at the Attari Integrated Check Post (ICP), said that normally two to three lakh bales (1 bale=170kg) of cotton were exported to Pakistan, but during the 2015-2016 the volume went up to more than five lakh bales, valued at around Rs 900 crore. “Cotton is among top three commodities exported to Pakistan from Attari border,” said Gill.
“Karachi business lobby has influenced the senate committee members to recommend ban on export of cotton bales from Attari whereas the fact is Pakistan desperately needs cotton lint form India as last year alone they registered 30% decline in the cotton output,” said intelligence sources.
Majority of exporters supplying cotton to Pakistan are from Andhra Pradesh, Maharashtra, Gujarat and Karnataka. “If the ban is imposed, it will be major loss to states exchequer in form of foreign exchange,” said a commission agent.
