Agri Business

Pak wants cotton cheap

M.R. Subramanian Chennai | Updated on January 12, 2011 Published on January 12, 2011

Pakistan stoppage of onion exports over land to India and its demand for 10 lakh bales of cotton from India are being perceived as a threat by the exporting community.

“If Pakistan is interested in getting cotton, it can get it from the open market by offering the price that is prevailing in the global market. Instead, demanding and linking it with onion can at the most be seen as blackmail,” said a Kolkata-based exporter.

According to exporters in Mumbai, Pakistan is offering around Rs 51,400 for a bale of 29 mm length cotton from India. “Against such an offer for Shankar-6, Pakistan is selling its cotton of 26 mm length at around Rs 57,000,” said an exporter from Mumbai.

Last week, Pakistan had asked India to allocated 10 lakh bales of cotton to it for its textile industry hit by supply shortage. Then towards the week-end, it banned exports of onion overland through the Wagah border. India is witnessing shortage of onions with the kharif crop damaged by unseasonal rains in November.

The Mumbai-based exporter said that on the other hand, Bangladesh had bought adequate quantities of cotton at around Rs 56,300 a bale.

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Published on January 12, 2011
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