The nuclear-armed rivals have seen tensions ratchet up in the past few months over Kashmir, and cotton traders in both countries said they were watching developments along the de facto border with alarm. There is uncertainty that, God forbid, if war breaks out, what will happen?” said Ihsanul Haq, chairman of the Pakistan Cotton Dealers Association. Pakistan Cotton commissioner Khalid Abdullah said a “low quantum of trade activity is still taking place.”He said the Pakistan government had not directed traders to stop buying Indian cotton and expected trade to normalize when tensions eased. It imported 2.5 million bales from India, and supported Indian cotton prices at a time when China was cutting imports, traders said. “As soon as the (political) situation improves, cotton trade will definitely resume between the two countries,” said Haq of the Pakistan Cotton Dealers Association.

Source: Mint October 08, 2016 05:37 UTC