Why Did Pakistan Have to Bow to India for Cotton and Sugar?

Pakistan's Economic Co-ordination Committee has approved the import of cotton and yarn from India. Reuters quoted unnamed sources as saying that Pakistan's largest organization related to economic affairs considered the possibility of importing cotton, cotton yarn and sugar from India on Wednesday afternoon. According to reports, this institution, which takes important economic decisions in Pakistan, has also allowed the private sector to import 5 lakh tonnes of sugar from India. Trade between India and Pakistan was closed for the last two years, but now trade is going to start between the two countries once again. But, the question is why the trade between India and Pakistan stopped and now Imran Khan wants to start the business. In fact, Pakistan's decision to end the ban on trade with India has come when the Pakistani textile industry is short of raw materials. In the neighboring country, this situation has happened due to the fall in cotton yield. Along with this, the import of cotton from countries like America and Brazil was becoming very expensive for Pakistan and the import was also taking a lot of time. On 29 March, Abdul Rajak Dawood, Finance and Investment Affairs Advisor to Pakistan Prime Minister Imran Khan, tweeted, "There has been a discussion with Prime Minister Imran Khan on the skyrocketing prices of cotton yarn."

Abdul Razak Dawood said, "The Pakistani Prime Minister has said that all steps should be taken to import cotton yarn from across the border, including the import of cotton through transport, so that the yarn can be made as soon as possible To reduce pressure on trade and keep pace with exports. Let us know that Pakistan imports large quantities of cotton from India. In 2018-19, Pakistan has raised more than $ 550.33 million ($ 55 million) from India. Had imported cotton.

In addition, organic chemicals worth more than $ 457.75 million ($ 457 million) were also imported from India by the neighboring country. The import of all these products constitutes half of Pakistan's imports from India. However, in 2019-20, India's cotton exports to Pakistan had dropped very fast and only $ 64 million ($ 6.4 million) was traded. As far as sugar is concerned, trade experts believe that both countries have long been This is the result of dependence on each other and lack of sugar in Pakistan is also a reason. Interestingly, between July-February 2020-21, Pakistan's sugar imports increased by 6,296 percent to 278,733 MT, compared to 4,358 MT during the same period in the financial year 2019-20. Talking about the price, Pakistan has spent more than $ 126.99 million (about $ 12 million) on the import of sugar.

On March 2, Dawood shared Pakistan's trade data, tweeting, "This year also the expenditure on imports has increased, because to control the market price we have to import wheat and sugar as well." Professor Nisha Taneja, India's Regional Trade Affairs Specialist at the Indian Council for Research on International Economic Relations, said, "There has been a dependence between the two countries on sugar. One thing is that Pakistan also produces sugar and so does India. , If there is a shortage of sugar in them, then India supplies and if there is a shortage in us, Pakistan supplies it. "

He said, "We have a very small list of products to import from Pakistan, even then agricultural products are at the top of Pakistan's import list." Prior to cotton and sugar, in May 2020, Pakistan approved the import of medicines and other medical equipment from India, so that supplies of essential medicines and equipment could continue during the Corona virus epidemic. After India has approved the export of cotton and sugar, now Pakistan will import 3 products from India on a large scale.

Explain that between April 2020 to January 2021, Pakistan imported organic chemical and pharmaceutical products worth $ 183.18 million (over 183 million dollars) from India.