Shortfall expected in 2016-17 season cotton crop
Currency Selling Buying KARACHI—The Karachi Cotton Association has expressed its concern over the devastating cotton crop failure in cotton season 2015-16 and expected shortfall in cotton crop 2016-17 season. Keeping in view the situation, the local textile industry is compiled to import row cotton from abroad to meet its requirement of basic raw material and ensure its contribution towards achieving the target of export fixed through exports of value added products as well as earning much needed foreign exchange for the country, said a statement on Monday.
However, due to payment of three per cent Custom Duty and one per cent additional duty on import of cotton, cost of the basic raw material of the textile industry i.e. imported cotton is considerably increased due to which the local textile industry is unable to compete in the international markets. Reiterating its firm stand to ensure free trading policy in cotton that is free export and free import of cotton without any quantitative and qualitative restrictions, the KCA strongly urges upon for waiving all duties and taxes on import of cotton immediately in order to provide an opportunity to the local industry to meet their requirement of raw material from abroad in the backdrop of shortage of cotton crop at home and make their business competitive.
The KCA also urges for taking concrete measures in all directions to increase cotton production in the years to come so as to meet the rising requirement of the local industry as well as leave adequate surplus cotton for exports to keep presence of Pakistan cotton in the international market and earn much needed foreign exchange for the country. The provision of export surplus will ensure international price of cotton to the Pakistani growers.—APP