Short­fall ex­pected in 2016-17 sea­son cot­ton crop

Pakistan Observer - - ECONOMY WATCH -

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

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