Criticising the cap on cotton yarn exports, the All Pakistan Textile Mills Association has urged the government to leave the free market mechanism intact.
The statement was made by Anwar Ahmed Tata, Chairman of APTMA, at a press conference on Saturday at the APTMA House, Karachi. Shahzad Ahmed, Vice Chairman APTMA and Muhammad Yasin Siddik, Chairman, Sindh-Balochistan Region of APTMA were also present. He urged the government to provide duty free import of man-made fibre and abolish all the countervailing measures in this regard to reduce load on consumption of cotton and encourage usage of man-made fibre. Tata said the government should encourage supply side of the spinning industry by providing relief to the sick and closed units and also encourage the establishment of new spinning units by reducing mark-up rate on long term loans.
APTMA leaders said during last three to four months production of yarn increased to 245,000 tonnes per month, out of which requirement for downstream industry was 110,000 tonnes per month, weaving sector consumed 60,000 tonnes per month while there was an additional yarn (25,000 tonnes) per month available after imposition of quota of 50,000 tonnes per month on export of cotton yarn.
Because of the restriction on export of cotton yarn, the spinners would be reluctant to import cotton and it was feared that there would be shortage of raw cotton and yarn from April onward, as the industry has cotton till March this year, Chairman of APTMA added.
Around 250 containers of value-added yarn were lying at the port, said the APTMA leaders. The exporters of yarn specified in clause (c) of the SRO 26(I)/2010 are asked to provide certificate from Ministry of Textile Industry for each shipment/consignment while the SRO under reference clearly states that the exporting units of said yarn are �egistered with the Ministry of Textile Industry and the consignments are certified, to any of those specified in sub-clause (i) to (v), by accredited laboratories.?br>
Tata urged the government to allow export of yarns specified in clause (c) as per directives of SRO 26(I)/2010 of 14th January 2010. APTMA Chairman said the government imposed quota of 50,000 tonnes per month on export of cotton yarn but no relief or advantage was given to the exporters of cotton yarn.
