UK/Pakistan – The British Government announced that licenses will be required for import of cotton yarn from Pakistan.
The import controls, which take effect immediately, have been imposed because there was no voluntary limitations agreement with Pakistan and because of a sharp increase of Pakistani shipments of cotton yarn in recent weeks, the Board of Trade said in a statement.
The quota is being fixed at 1,200,000 lbs for the two years; 1962 and 1963 taken together.
Giving details of the licensing arrangements, the Board of Trade said only importers already engaged in the Pakistan cotton yarn trade might apply for licences. Shipments already afloat would be licensed but would count against both the individual importers and the total quota.
The Board of Trade stated that the British Government had hoped to avoid import restrictions in view of the low rate of cotton yarn imports from Pakistan during the last two years — 0.6 million lbs in 1961 and 0.2 million lbs during the first eight months of 1962.
But in view of the evidence of a sharp increase in recent weeks there was no alternative to introducing licensing in order to maintain the arrangements accepted by Hong Kong and India for the limitation of such exports from the three countries concerned, the Board said.
Rates of imports from the three Commonwealth countries last year were: India 11.5 million lbs; Hong Kong 6.3 million lbs; and Pakistan 0.6 million lbs
Cotton prices drop in City market
The quota restrictions imposed by Britain on the import of cotton yarn from Pakistan had an immediate effect on cotton prices — in Karachi, the prices dropped by 65 paisa per maund after the restrictions were announced yesterday.
Though there were larger foreign sales during the last fortnight, the cotton market became easier on account of the restrictions, as it will affect consumption of cotton by the mills.
The January contract which closed at Rs72.40 per maund earlier, was at Rs71.75 per maund when the market closed yesterday.
Yarn merchants said that the prices of cotton yarn have also been slightly affected by the restrictions.
Source: Dawn News