The escalating border tensions between India and Pakistan have started hitting other sectors. The plant quarantine department under Islamabad's ministry of agriculture has stopped issuing permits to its traders for import of commodities from India, though without an official announcement.
Kavita Gupta, the government's textiles commissioner, confirmed the development. India exports vegetables, cotton and pulses, among others; it imports fruit, shrimp and onions, to name a few, from Pakistan. However, total agri export to Pakistan is a little less than 0.3 per cent of the overall export. It was $225.8 million for 2015-16, as compared to $303.9 mn for 2014-15. For the April-September period this year, first half of the financial year, it was $86.1 mn.
"We are taking up this issue with the appropriate authority in Pakistan and believe the matter would be resolved soon," said Gupta.
"For a smooth business environment, a conducive political climate is required, which is absent between India and Pakistan at present," said Ajay Sahai, chief executive of the Federation of Indian Export Organisations. He felt the trade halt would hit Pakistan far more than India.
Pakistan imported 2.7 million bales of cotton (a bale is 170 kg), around 40 per cent of India's overall export in 2015-16, due to crop failure there. The textiles ministry had expected them to import around 1.5 mn bales this year.
Pakistan competes with India in textile export to developed countries. "In case of cotton import from elsewhere, their transportation cost would go up, which would result ino Pakistan losing competitiveness with India," felt Sahai.
