Cotton price hikes India temporarily withdraws 200,000 bales of cotton from Pakistan

The All Pakistan Textile Manufacturers Association (APTMA) said on Wednesday that Indian traders have not fulfilled the 200,000 bales cotton orders already established by Pakistani businessmen.

Pakistan confirmed that it had confirmed 522,000 bales of cotton orders with Indian exporters so far, of which Indian exporters have not fulfilled 200,000 bales of cotton orders.

He said that Pakistani importers now have to import about 59 cents/pound of cotton from India, which is much higher than the earlier cancelled orders.

The lint importer in Pakistan is considering inviting the International Cotton Association (ICA) to arbitrate the withdrawal of 200,000 bales of cotton orders by Indian exporters.

He said that Indian exporters did not give any reason for not fulfilling Pakistani importers' confirmed orders, and India’s practices have caused huge economic losses to Pakistan.

India’s refusal to export 200,000 bales of cotton violated the rules and regulations of the Liverpool ICA and became a national contract dispute.

Indian traders are now asking for a price of $1.05 per pound, and import orders for Pakistani importers are priced at about 54 cents per pound.

He said that in order to fill the urgently needed production cotton gap, the Pakistani textile industry imported cotton from other sources and assumed a burden of about 970 million U.S. dollars.

He said that India's cotton prices have risen by about 50 cents and the cancellation of Pakistani orders has led to a rise in domestic lint prices in Pakistan.

He said that Indian businessmen have the habit of changing the price of imported orders that have been confirmed, and this has happened twice.

He said that we hope that a fair and internationally recognized arbitration institution can maintain the sacredness of Pakistani contracts in order to promote good trade practices.