THE textile industry is in a dilemma as cotton trade between Pakistan and India has been hit by a rise in border tension; and traders across the border, being uncertain of future developments, are not entering into new deals.Pakistan’s Cotton Commissioner Khalid Abdullah says a low quantum of trade activity is still taking place. The government has not asked importers to stop buying cotton from India but many of them are not buying on their own as a gesture of national solidarity. However, Indian exporters are refusing to sell at their government’s behest although they would be the losers, reports the Dawn.Pakistani spinners are the biggest buyers of Indian fibre. Fewer imports by Pakistan this year could hurt Indian exports, raise their prices and help rival cotton exporters like Brazil, the United States and some African countries. For Pakistan’s industry, buying the raw material from other sources may prove costly owing to long distance freight. In fact, the situation is in a wait-and see mode. Cotton trade between the two countries is worth $822m a year.Pakistan’s Cotton Commissioner Khalid Abdullah says a low quantum of cotton trade activity is still taking placeAnother victim of high political temperature is vegetables. According to Times of India, traders from the Indian state of Gujarat have decided to stop supplying vegetables to Pakistan.Gujarat used to send 50 trucks having 10 tonnes of vegetables, mainly tomatoes and chilli, to Pakistan via the Wagah border. This is the first time in almost two decades that Gujarat’s exporters have halted the supply of essential vegetables to Pakistan. The commission agents say they will not resume exports till the normalisation of relations.The suspension in cotton trade comes at a time when Pakistan’s cotton crop has recorded an overall decrease of 15pc over the last year, adding to the industry’s woes. Pakistan, the world’s third-largest cotton consumer, starts importing from September, but this time there has been little activity so far.
