From India after stopping for some days, Pakistan has commenced buying cotton. For Pakistan, India is the top cotton supplier. By this process, Pakistan in getting economically priced cotton and will help India in selling the surplus cotton stock.
In a year, to Pakistan, India sells about $822 million worth of cotton. As Pakistan had stopped giving import permits in November and for this Indian cotton about 300000 bales were stuck. As also the phytosanitary certification was failing, Pakistan had stopped the imports.
On the Phytosanitary certification issue, Pakistan and Indian officials are still working. From year beginning in October, the Indian traders have contracts of selling 350000 bales of cotton to Pakistan.
Exports of 300000 bales for the month of December and January were stuck as Pakistan cutting off the imports. in 2015-16, the biggest buyer of Indian cotton with 40% share of exports was Pakistan. Earlier for Indian cotton, Bangladesh was the biggest market.
It is producing only 10.5 million, but it will consume 15 million bales of cotton by Pakistan and it is expected. From Indian previous year, Pakistan had purchased 2.7 million bales of cotton. As China had reduced the cotton imports, the falling cotton prices in India are stabilising by this.
