India's Cotton exporters are unhappy, despite Pakistan scraping import duty on Cotton, as high domestic prices have made exports uncompetitive.
Pakistan has scrapped import duties on Cotton for Feb 1-Jun 30 to tide over shortage of the crop. Indian traders, usually large exporters to Pakistan, would have benefited, but for their high procurement cost.
Indian Cotton is currently available around 43,000 rupees a candy (1 candy = 356 kg), while prices in Pakistan are at sub 43,500 rupees making it (exports) unviable so far.
In 2015-16, India had exported over 2.5 mln bales of Cotton to Pakistan when crop there fell over 30%. In the current year, Pakistan has harvested 10.8 mln bales of Cotton, down 25% from initial target of 14.4 mln bales.
Currently Indian Cotton prices are not competitive, exports to Pakistan may increase if Indian rupee start depreciating or if there is an increase in Cotton prices in Pakistan.
Πηγή: commodityonline.com