Value added textile industry seeks ban on yarn exports


Farhan Zaheer April 29, 2010

KARACHI: The value added textile sector has asked the government to either ban or slap a 25 per cent regulatory duty on exports of yarn to save the industry from closure.

Representatives of the value added textile sector and the spinning industry met with Federal Textile Industry Minister Rana Farooq Saeed Khan in Islamabad on Thursday and presented their points of view on rising cotton yarn prices and its shortage. “The meeting concluded with the understanding that the government will adopt one of the two options – a ban on yarn exports or imposition of regulatory duty,” said Jawed Bilwani, Chairman Pakistan Apparel Forum, who represented the value added sector in Thursday’s meeting.

The meeting inconclusively and they will meet again on Monday for a final decision. Bilwani said that nine members of the value added sector and three representatives of spinners were present at the meeting. “We do not think that a ban on yarn exports will be a good decision keeping in view the free market economy. We believe that there is no yarn shortage in the local market and the reason behind rising yarn prices is high rates in the international market,” said Anwar Ahmed Tata, Chairman All Pakistan Textile Mills Association (APTMA), an organisation representing the spinners.

He said that it is true that hoarding on a big scale has taken place in the country with rising cotton prices. This along with panic buying has resulted in a sharp increase in cotton yarn prices. “We also want the government to take a decision in national interest. And we will be satisfied with any government move in this standoff,” Tata added. A ban on yarn exports will be like the case of sugar in which the government tried its best to reduce prices but failed because the decision was contrary to the free market mechanism, said Tata.

The value added sector has been publishing advertisements in leading newspapers for the past few days asking the government to save the sector from collapse and ban yarn exports. The value added industry and the spinning sector will meet on Monday each with four representatives, said Tata. Bilal Mulla, former chairman Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA), who also attended the meeting, said that spinners have no strong reason to support their position. “We have asked the government to ban yarn exports or impose a 25 per cent duty, otherwise the value added sector will close all industries.

We demand that the government take a final decision in the next meeting,” he added. “The government should take all decisions in the national interest and we believe that considering the present conditions it should ban yarn exports,” said Mulla.

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