Prices of grey cloth register sharp rise

FAISALABAD, Jan 7: Prices of grey cloth have registered a sharp surge at the local yarn market owing to short production by looms that was being caused by severe power fluctuations, Dawn learnt on Monday.
Faisalabad is known as textile capital of Pakistan and yarn market is the hub of textile trade activities. Nowadays, it is wearing a deserted look even in peak hours because of slump in the business, thanks to the Faisalabad Electricity Supply Company (Fesco).
Businessmen, loom-owners and brokers have sought an end to loadshedding and gas shortage as it was hurting business activities.
A survey revealed that various verities of PC and cotton grey fabric surged from Rs3 to 5 during last few days.
On the contrary, few qualities of grey fabric are being sold in the black, owing to rising demand from exporters who are bound to dispatch their export shipments within a stipulated time.
Traders are reluctant to make new deals because of uncertainty.
They said business deals in the current situation may result in huge financial losses. Stocks of big units are their prime target to run their businesses smoothly, but millers are also demanding rates according to their own sweet will.
Loom factory owners have also started laying off staff to minimise expenses on account of power suspensions which have compelled them to run factories only for few hours.
Yarn traders told Dawn that some two months back, they had displayed banners urging the government to look into the grave situation faced by the industry and take immediate remedial measures for the benefit of the sector, having a gigantic share in the national market.
However, no steps were taken, and situation was now going from bad to worse because of hours long power fluctuations.
They said unannounced and unscheduled load-shedding had multiplied their woes, and there was a surge in the prices as well.
They said exporters have been running from pillar to post to get their consignments completed timely, but all in vain owing to high prices.
Nasir Hanif said loom-owners were in a fix, nowadays because of power fluctuations which had landed them in an awkward situation. A loom, of which production was 100 metres daily, is weaving only 40 to 45 metres.
The situation is enough to tell the people in the power corridor how badly the industry had been affected.Regarding stability in the market and decline in fabric prices, he said there was no immediate let-up as fresh grey cloth was not arriving in the market these days, and the situation could be improved only with fresh arrivals.
The All-Pakistan Powerlooms Association (APPA) chairman, Khalid Cheema, said industrialists were bearing the brunt of government decisions and waiting for a Messiah.?br>
The industry, he said, was contributing billion of rupees in taxes and required special incentives.
He said the APPA was going to devise a strategy to save this important industry and arrest hours long load-shedding.