Pakistan allows cotton imports from India via land

Mumbai: The Pakistan government has allowed import of 500,000 bales of short-staple cotton by land from India, the government said.

The decision, taken by the Economic Co-ordination Committee (ECC), temporarily eases a cap that safeguards local growers from surplus stocks with its neighbour.

The committee reviewed Pakistan textile mills' requirements, which
fluctuate between 14 and 16 million bales every year.

Pakistan, the world's fourth-largest cotton producer, is expected to
see a 1.33 million shortfall in output at 12.80 million bales in the 2007-08 crop year.

Pakistan already imports cotton from India and various other countries by sea, a route industry officials say adds more than Rs200  ($3.30) per maund in import costs.

In May, the government allowed imports of long-staple-cotton by land
from all neighbouring countries, including India, but deferred a decision on importing short-staple-cotton until it analysed its impact
on domestic growers.