Karachi Cotton Association expresses its deep concern over devastating cotton crop failure in cotton season 2015-16
Karachi, July 04, 2016 (PPI-OT): The Karachi Cotton Association has expressed its deep concern over the devastating cotton crop failure in cotton season 2015-16 and expected shortfall in cotton crop 2016-17 season due to which, all stakeholders of cotton economy are badly effected.
Keeping in view of the situation stated above, the local textile industry is compelled to import raw cotton from abroad to meet its requirement of basic raw material and to ensure its contribution towards achieving the target of exports fixed by the Government through exports of valued added products as well as earning much needed foreign exchange for the country.
However, due to payment of 3% Custom Duty and 1% Additional Duty on import of cotton, cost of the basic raw material of the textile industry i.e. imported cotton is considerably increased due to which the local textile industry is unable to compete in the international markets.
Reiterating its firm stand to ensure free trading policy in cotton i.e. free export and free import of cotton without any quantitative and qualitative restrictions, the KCA strongly urges upon the Government to waive all duties and taxes on import of cotton immediately in order to provide an opportunity to the local industry to meet their requirement of raw material from abroad in the backdrop of shortage of cotton crop at home and make their business competitive.
The KCA also urges upon the Government to take concrete and effective measures in all directions to increase cotton production in the years to come so as to meet the rising requirement of the local industry as well as leave adequate surplus cotton for exports to keep the presence of Pakistan cotton in the international market and earn much needed foreign exchange for the country. The provision of export surplus will ensure international price of cotton to the Pakistani growers.
For more information, contact:
Karachi Cotton Association
The Cotton Exchange I.I Chundrigar Road,
Phone: + (92)242-5007, + (92)241-2570, + (92)241-6497
Fax: + (92)241-3035, + (92)241-2580