Pakistan: Surge in yarn prices hits cloth market

FAISALABAD, Nov 4: A surge in the prices of yarn has paralysed the local grey cloth market and hampered the fabric production, which might result in a decrease in exports.
The yarn market, believed to be Pakistan biggest yarn sale and purchase centre, is facing the situation for the last two weeks and the situation is deteriorating day by day. As the prices of cotton, polyester cotton and yarn surged from Rs1,000 to Rs1,500 per bundle, hoarders took advantage of the situation and accumulated these items to mint money from small traders. Local traders and powerloom owners are not buying yarn or any kind of fabric because of the uncertainty prevailing in the market.
Riaz Shahid, a grey cloth trader, said the textile industry was suffering, but the government was indifferent to its problems. Presently, 25,000 powerlooms; 100,000 silk power and shutless looms; 1,000 dyeing mills; 500 printing mills; 130 textile processing, printing and finishing mills; 40 spinning mills and about 1,500 hosiery and knitwear units are working in the district.
The industry which had employed more than one million people is expelling its workers because of the prevailing crisis. The All Pakistan Cotton Powerlooms Association has displayed banners in markets against the surge in yarn prices. The banners also demand action against hoarders.
APCPA Chairman Khalid Mehmood Cheema said the industry, which brings over $2 billion foreign exchange and pays Rs30 billion tax every year, was suffering because of the government apathy. He said closure of more than 200 spinning units and hoarding of yarn by big fish was the main reason behind the present crisis. All Pakistan Yarn Merchants Association Chairman Pervaiz Khalid Sheikh said the present crisis was the result of a gap between demand and supply. He said the crisis could be overcome by importing cotton from India.