Industry divided over cabinet’s decision to continue ban on Indian imports

KARACHI: Businessmen and traders have shown mixed response to the cabinet’s rejection to the government proposal of cotton and sugar imports from India.

Pakistan Yarn Merchants Association rejected the cabinet decision for not importing cotton from India.

The association representatives Hanif Lakhany and Farhan Ashrafi said the Economic Coordination Committee (ECC) of the cabinet allowed the import while the cabinet rejected it, which is not understandable.

The government should play serious role in economic issues, they said. The government should take efforts to provide raw material to the industry. If raw material is not available to the industry on economical rates, meeting the export orders would become difficult, they added.

The federal cabinet turned down the ECC’s decision to import cotton and sugar imports from India to meet local demand. Although the Prime Minister Imran Khan approved the summary presented to the ECC, the cabinet linked trade with Indian to resolution of political differences between the neighboring countries.

Naseem Usman, chairman of Karachi Cotton Brokers Association said the country needs cotton and cotton yarn. However, decision to import cotton is to affect growers. “They wanted to grow cotton, but some people became dishearten and said when cotton would be imported from India, why should they grow cotton,” Usman said.

“As a whole it is not in favour of the country when the institutions are not on the same page,” he said.

Usman said Indian traders were prepared to give offers to Pakistani importers.

Yasin Siddik, former chairman of All Pakistan Textile Mills Association (Aptma) told The News that Pakistan should not allow duty free import from India.

“India has put 100 percent duty on our products, why should we allow them zero-rate,” he said. “We have some shortage but the world is open. If India comes down to at least five percent duty, we can give zero-rated to them.”

Aptma leader Asif Inam welcomed the cabinet decision of not allowing import of cotton yarn from India. “This is a very good decision. India’s yarn is not being sold in the world market. It is their problem, not ours,” he said.

Inam said the ECC should have not taken the decision without approval of the cabinet. It was taken in a hurry. Some people in Pakistan are having problem and they wanted to import yarn.

Iskandar Khan, chairman of Pakistan Sugar Mills Association said the industry had asked the government in June last year to import raw sugar. “If sugar is to be imported, sales tax should be there. We don’t have any objection on import. Government is not imposing any sales tax on imports while India subsidises its industry,” he said.

Khan said the cabinet decision would not provide any benefit to them. “We want people should get sugar at reasonable rate but the taxes should be imposed on the imported sugar,” he said.

Khan said all people in the industry are not thieves. There are good people like other industries. Out of 82 sugar mills in the country, 23 are not members of the association. However, he said, the wrong doings could be controlled through the technology.