Cotton farmers suffer as India-Pakistan tensions rise

Cotton farmers suffer as India-Pakistan tensions rise

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The growing tension between India and Pakistan is having a big impact on cotton farmers. According to Indian traders, Pakistan has put an official ban on importing Indian cotton, ensuring that farmers all over the country are suffering, but especially those from Maharashtra, as the state is a major producer and exporter of cotton.

Pradeep Jain, one of the major cotton traders from Maharashtra, explains the scenario. "Currently, there is no official ban by Pakistan on Indian cotton. But in the present scenario both Indian and Pakistani traders are reluctant to do business deals. Today, by border road, 99% of our exports have stopped. Sentiments are heightened now and our traders feel why we should do business with Pakistan if our soldiers are fighting them?" Statistics show the impact the unofficial ban is having on trade. According to data brought out by the Central Institute of Cotton Research, Pakistan had bought 27 lakh bales (one bale is 170 kg) out of the total Indian exports of 69 lakh cotton bales last season.

This year though, Indian traders are worried that, thanks to the Pakistani boycott, this target will not be met. As a result, farmers are dropping prices with results that are hurting them.

Sanjay Patil, a cotton growing farmer from Jalgaon said. "The current tensions between India and Pakistan have caused big financial losses to us. Two years ago, we sold the cotton almost Rs 7,000 per quintal. Today, we are selling cotton at the rate of Rs 4,500-5,000 per quintal. We respect the peoples' sentiments but trade should not be hampered. If things do not improve, the government should buy our cotton at a minimum rate price of Rs 6,000 per quintal."

Ishwar Patil, another farmer from Dhule explains that the falling prices are also hurting farmers, as cotton traders are taking undue advantage of the situation. "We cannot keep the cotton at home for a long time due to many reasons. As a result, we are compelled to sell the cotton to cotton traders at a lower rate." He adds, "Indian traders are also taking advantage of the current situation to decrease cotton prices and buy at a low rate from farmers.

Once the situation normalises, these same traders who had stored the cotton will sell it at a higher rate, making a big profit, while the farmer suffers."

Clearly, the Indian farmer's livelihood is under threat and until the situation normalises between the two countries — at least on the cotton front— he will continue to suffer. But according to Shahzad Ali Khan, chairman of the Pakistan Cotton Ginners Association, that is not likely to happen anytime soon.

Speaking over the phone to DNA, Khan confirmed that at present business activities with India are quite low. "The Pakistan government has not made any official ban on importing cotton from India. However, we as traders have taken the conscious call not to buy cotton from India because of the current situation."

He said, "As a result, we have decided to buy raw cotton from local Pakistan cotton growers and pay them a reasonable rate as per world prices. Why should we pay higher prices to Indian farmers in such a scenario? Once the situation normalises, we may think of resuming trade with India," Khan added.

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