India's ban on cotton exports unnerves Pakistani industry

[Spring Onion]

Pakistan can buy cotton from Turkey, whats the problem. India has given Pakistan MFN status, while Pakistan has not reciprocated.

Hence Pakistan should not mind.

we dont mind at all. But India has played a foul here first she booked Pakistani orders and now when the peak textile period is here India has canceled it leaving the traders in the lurch and now they have to run from post to pillar for having same from other countries and may be they are late to fulfill their orders of the clients.

 

[silent hill]

Pakistan can buy cotton from Turkey, whats the problem. India has given Pakistan MFN status, while Pakistan has not reciprocated.

Hence Pakistan should not mind.

the smartness would be to invest in the cotton agriculture and by making clever policies instead of moving to another corner and start praying for help!!

 

[Apna Punjab Hove]

and India wont have the natural calamity

No offence , and neither I am being smart or arrogant here , but I dont think We need your Help as much as You need Our`s.

 

[mehboobkz]

Bangladesh came from behind and overtook Pakistan as far as garment export is concerned. And bear with me on the stark fact:

Pakistan is cotton surplus country, while BD is cotton deficient country......

Therefore my vote for BD on this account.

 

[ISRO Go!]

and what idiot said we dont have dams??? have you actually looked at the percentage of our defence expenditure, its bharat who always start the arms race in the region..

pakistan ne f-16 khareda, hamara bharat f-16 banyega!!!

F-16 has no future and it's outdated,we don't want it even it's given for freee,it's just a waste of money and time

 

[Beacon]

An order is an order and it has to be completed by the traders.. It is not S300 to be stopped from being sold coz of fear of sanctions....

I dont agree with what GOI did... It could have controlled all future transactions... say delivery after 6 months from now..

It is not helping anyone, only causing price inflation in the other country...

 

[Apna Punjab Hove]

and what idiot said we dont have dams??? have you actually looked at the percentage of our defence expenditure, its bharat who always start the arms race in the region..

pakistan ne f-16 khareda, hamara bharat f-16 banyega!!!

ha ha.lol to that sarcastic comment mate... funny!!! (and I am not being sarcastic)

 

[deckingraj]

Of course Indian or Chinese market would be been cheaper than any other nation... so you are right!

Kewl...So in short what Pakistan did was not a disaster...I am glad we agreed upon it...

But the matter of the fact is, First they agreed to accept these orders and now cancelling? That will only harm Pakistani industry as they will not be able to complete their orders and damage the reputation in International market thus marking India more friendly nation to trade textile products in coming years as well

Here you are wrong...I have shared some points with zana in above post so will not repeat it...understand the only reason you are in market is because your product is competative...The whole world knows about the flood so if at all you default on some occassions losses will not be as dramatic as your are suggesting...Next year hopefully Pakistan will be back to cotton biz will full zeal...Moreover you can always import cotton from other destinations, in other words hell has not broken loose....there are still options out there which can help Pakistan fulfill her orders....

Problem is, if they pledged before they must know if they have extra bales to export on stock or they are just making empty pledges (and not to forget the think relationships we have with India)

Zaki, please understand how trade works especially with commodities...It is all in contracts...if the contract says obligation has to be met or else face punitive fines then those obligations will be met...For example last year when common man in India was sweating due to rise of sugar prices GOI was busy exporting sugar even after a ban was imposed on it, reason was plain and simple - that have to met the obligations....I am not sure what is the nature of contract but if there is anything legal then those obligations need to be taken, period. Though looking at the article it seems there is nothing obligatory or atleast not very stringent...

 

[mehboobkz]

we dont mind at all. But India has played a foul here first she booked Pakistani orders and now when the peak textile period is here India has canceled it leaving the traders in the lurch and now they have to run from post to pillar for having same from other countries and may be they are late to fulfill their orders of the clients.

India has stopped exports not only for Pakistan, but for the whole world.....BD included as our neighbour.

India, the world's second biggest cotton exporter, stopped cotton exports this week to cool rising domestic prices, which surged more than 25 percent since October because of poor harvests and expectations of higher demand.

 

[mehboobkz]

It is not helping anyone, only causing price inflation in the other country...

Why should India worry about other country and its inflation and not its own?

 

[Von Hölle]

Please keep in mind one thing that i am talking from pure economics perspective...Now with that set in stone let me share my thoughts....


True for every single export-import order given the decision maker is not lunatic or corrupt...In short i am in full agreement here...


Absolutely, lets see what you have come up with....


You are right, though if we go by statistics we have done poor if compared to what we did in 2008 in this particular field...


What? How come??? You know that there is not just macy's that we export our finished goods too, right??? There are many markets out there who are just interested in raw material because for them it is more beneficial to import raw material than finished goods. Our finished goods is not competative in their markets as compared to finished goods prepared by raw material exported by us, so in short either we loose those markets or export whatever they want us to export...We have enough cotton production and our textile industry export is in billions...I don't care if it is raw material or finished goods as long as that industry is in surplus and growing.



Exactly, so how come halting exports is any news to feel good about???

both these are not stand alone arguments..they go hand in hand

The way it goes is since cotton production is expected to be low(supposedly) hence instead catering for international demand of raw material and force our domestic industry to import from outside..
we carters our demands first ..bring our finish products in the market.

..since India and Pakistan are main cotton exporters(who are not exporting) other than China and US..there is less raw material in the market(more expensive)....hence the other finished goods market can not compete in prices and we get grab a section of low price finished goods market.

Very wrong assumption...Pakistan textile industry is preferred because their products are competitive...Next year their home grown production will be back to business, also there are other sources to import cotton apart from India...So not sure how we can achieve what you are suggesting....

Yes we can not decimate their industry(neither do we want to) but we can earn quick profit this year and from next year it will business as usual.

 

[SpArK]

The ban on cotton is mainly due to cotton deficit, under-utilisation of yarn and textile mills capacities apart from hike in costs for entire textiles industry.


Currently, cotton prices in domestic markets are ruling at around Rs 41,000 per candy (37.32 kilos), about 90 per cent higher than Rs 22,400 per candy in the same period last year.

A couple of years ago, the global market price was 0.67 dollars per pound but it has since skyrocketed to 1.27 dollars per pound, the highest of the last 15 years.

 

[mehboobkz]

Bangladesh fills 60 percent of its annual demand of 4 million bales of cotton from Uzbekistan, the world's third-largest cotton exporter, officials said. It also buys cotton from Russia and U.S.A. worth more than $1.5 billion.

So can Pakistan without crying....
Follow Bangla bashi who are not acting as cry baby...

 

[pankaj agrawal]

why pakistanis are crying ?? they should have known that they are dealing with enemy country. A good lesson to them.

 

[deckingraj]

both these are not stand alone arguments..they go hand in hand

The way it goes is since cotton production is expected to be low(supposedly) hence instead catering for international demand of raw material and force our domestic industry to import from outside..
we carters our demands first ..bring our finish products in the market.

..since India and Pakistan are main cotton exporters(who are not exporting) other than China and US..there is less raw material in the market(more expensive)....hence the other finished goods market can not compete in prices and we get grab a section of low price finished goods market.

Yes you are right but what you are not counting is that we will loose these customers viz-a-viz our competitors especially from next year when Pakistan comes back from the after effects of floods because once cottong supply comes back to normal our finished goods will not become as competative as they were just a year ago...Think then what will happen to our industry which has invested a lot in set-up more production fascility just to put with the dramatic increase in orders?????

Please note trade is not just one year thing. If you loose confidence of your trading partners you will loose a lot...Secondly we are trade deficit country, if you try and milk people by cheap means they will milk you mani folds in other areas....My advice please look at it in totality then mere textile industry....

Yes we can not decimate their industry(neither do we want to) but we can earn quick profit this year and from next year it will business as usual.

Wrong again...such a move will take India's reputation from a resposible trading partner to a mere opportunists...Also the profits you are talking about is not that huge...so all in all we will loose more then gain anything...secondly why you keep forgetting that this ban is for whole world and not specific to Pakistan...In short no need to think this was done to malign Pak textile industry....