The prevailing border tensions between India and Pakistan have taken a toll on the cotton trade between the two countries, according to Indian news agencies.
Pakistani spinners are the biggest importers of Indian cotton with an annual trade between two countries worth US$822 million.
Pakistan usually starts receiving imports in September, but this year, due to the heightened tensions, the traders from both countries have not entered into new deals.
This comes at a time when Pakistan’s cotton crop has recorded an overall decrease of 15% compared to the previous year. Moreover, buying the raw material from other sources may prove costly owing to higher freight charges.
For Indian exporters this in turn could lead to a price rise, which would help their rivals such as Brazil, US and some African countries.
The rivalry between India and Pakistan has already had an affect on the Indian film industry with some right wing political parties calling for a ban on Pakistani actors featuring in Indian films. The Cinema Owners Exhibitors Association of India has also decided not to release movies starring Pakistani actors in some states.