Rawalpindi based D.M. Textile Mills Ltd's Mian Habib Ullah stated that they expect to start importing cotton from India by next month.
An expected shortfall in cotton production in Pakistan is likely to see a jump in imports from India by its textile mills this year.
He also stated that in India as part of a 100-member delegation to the first South Asian Association for Regional Cooperation (SAARC) Business Leaders' Conclave. The raw Indian cotton was already being imported by Pakistan.
Habib Ullah stated that while Pakistan's demand for raw cotton has gone up to 16 million bales (of 175 kg each), the production this year due to erratic rains is expected to be 13 million bales against 15 million bales last year. They are expecting a shortfall of three million bales.
Unlike Pakistan, India is expecting a bumper cotton crop led in part by an increase in cultivation of genetically modified cotton and a rise in the acreage.
The US Department of Agriculture (USDA) has forecast that India is set to produce another record crop of 19 million bales due to a substantial increase in yield together with a rise in the cotton area. Among the leading producers of cotton, India is seen as an emerging force in the global market as production continues to outpace domestic demand.
He also informed that a lot of cotton is already being imported from India as it is of good quality. At current price levels, importing Indian cotton is a workable proposition, instead of going to New Zealand and Australia.
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