Pakistan import duty may dent India 2017-18 cotton exports.

Pakistan has decided to re-introduce the 4% customs duty on imports of cotton for 2017-18 (Aug-Jul), a move that has raised an alarm for India as this may hit its exports. Though it is still premature to put a number to the quantum of fall in exports, traders estimate it at 0.5-1.0 million bales (1bale=170kg), or 25-50% of this year’s exports to Pakistan. India total cotton exports to Pakistan are estimated at 1.8-2.0 million bales in 2016-17 (Oct-Sep). Import duty (in Pakistan) may have negative impact on India’s exports to the tune of 1 million bales.