INDIA: KBP demands ban on cotton import from India
Kissan Board Pakistan has demanded of the government to ban import of cotton from India forthwith to save 1200 ginning factories from financial crunch. Secretary General KBP Malik Mohammad Ramzan said here on Monday that according to reports the Indian government has announced 5 per cent subsidy for the importers of cotton from India.
"This offer may allure the Pakistani Textile Mills owners to buy cotton from India instead of the local ginners, who have more 1.346 million bales in their stocks," he added.
Malik said if the local cotton ginners are unable to clear their stocks in time and cash starved they would be unable to buy seed cotton (phutti) from the growers this year, thus Pakistani farmers and agriculture sector would be ultimate sufferers.
A former President of Pakistan cotton ginners association Mohammad Azam Warriach told Business Recorder that the ginners had taken large loans from the banks on high interest rates to do business and make prompt payment to the farmers for purchase of the phutti. He said the ginners are under pressure to sell their product in order to curtail their financial liabilities as the spinners might prefer to import cotton.
Added: February 24, 2009 Source: Agencies