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Surekha Sule
Cotton prices in Pakistan have reportedly been shooting up lately mainly due to supply shortage in the face of pest attacks on its crop. Though cotton is rising in the international market also, Pakistani cotton is getting uncompetitive.
Pakistan, whose raw cotton exports at 3.10 lakh tonnes in 1995-96, exported only 50,000 tonnes in 1996-97 owing to crop failure. During 1997-98, the preliminary estimate for its cotton exports is placed at 1.83 lakh tonnes.Importantly, Pakistan produces only short staple and medium staple cotton. India too has produced more of lower varieties this year and recently the government announced opening up of unutilised quota of cotton export but in inferior varieties. Thus Indian exporters stand a chance to push in the market where Pakistan is getting edged out, according to market sources.
However, cotton shortages at home at the fag end of the season are likely to put a spoke in the wheel when there is an opportunity to push exports.
Earlier high domestic prices as Cotton prices in Pakistan have reportedly been shooting up lately mainly due to supply shortage in the face of pest attacks on its crop. Though cotton is rising in the international market also, Pakistani cotton is getting uncompetitive.
Pakistan, whose raw cotton exports at 3.10 lakh tonnes in 1995-96, exported only 50,000 tonnes in 1996-97 owing to crop failure. During 1997-98, the preliminary estimate for its cotton exports is placed at 1.83 lakh tonnes.Importantly, Pakistan produces only short staple and medium staple cotton. India too has produced more of lower varieties this year and recently the government announced opening up of unutilised quota of cotton export but in inferior varieties. Thus Indian exporters stand a chance to push in the market where Pakistan is getting edged out, according to market sources.
However, cotton shortages at home at the fag end of the season are likely to put a spoke in the wheel when there is an opportunity to push exports.
Earlier high domestic prices asagainst low international cotton prices affected India's export performance and as against a release of seven lakh bales for exports, only 2.10 lakh bales have actually been exported during the current cotton year.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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