New Delhi, Oct 18 (KNN) Decline in cotton trade between India and Pakistan after the tension between the two countries might ease the raw material prices in India which would reduce the burden for micro, small and medium enterprises (MSMEs) here, an Expert told KNN.

According to a report, the tensions between India and Pakistan have hit their cotton trade -- worth USD 822 million a year.

The Dawn on Monday quoted Pakistan's Cotton Commissioner Khalid Abdullah as saying that a low quantum of trade was, however, still taking place. But most Pakistani buyers were not buying cotton from India "as a gesture of national solidarity" in the wake of India-Pakistan animosity, the daily said.

KNN spoke to Animesh Saxena, Managing Director of Neetee Clothing Pvt Ltd on this. Saxena said, “The cotton yarn prices in India had gone quite high in the last six months making the raw material very expensive for the industry. If the exports to Pakistan fall, this will be good for the textile, garment apparel industry here.”

Saxena said, “Pakistan was never a very big market for cotton yarn but since their crops were not good for quite some time, they were buying cotton from India.”

The Dawn Report on Monday reported, “Indian exporters too were refusing to sell cotton, it added. Pakistani spinning mills were the biggest buyers of Indian fibre.”

"Fewer imports by Pakistan this year could hurt Indian exports, raise their prices and help rival cotton exporters like Brazil, the US and some African countries."

"For Pakistan's industry, buying the raw material from other sources may prove costly owing to long distance freight," Dawn added.

Meanwhile, Saxena said that the decline in trade between the two countries will not affect the buyers here much as in India there was a demand of very small segment of fabric from Pakistan.

“Pakistani lawn fabric was little popular here but was expensive too. So the impact would not be much,” Saxena said.

On the impact of absence of Pakistan stall at Trade Fair in Pragati Maida this year, Saxena said, “Earlier also, the Pakistani traders used to sell their products through Dubai route. This year too it might happen but this will make the products even more expensive.”

In 2015-16, exports from Pakistan to India dropped to $400 million from $415 million in 2014-15. India's exports to Pakistan surged 27 per cent to $1.8 billion over the same period. (KNN Bureau)