The federal government has turned down the proposal of value-added textile sector for imposing ban, or regulatory duty, on export of cotton yarn. Sources in the Ministry of Textile told that despite strong and continuous protest by the value-added textile sector, the federal government has decided not to impose a ban or regulatory duty on export of cotton yarn.
They said that Ministry officials have clearly conveyed this message to the representatives of value-added textile sector that the government has no plan to ban export of cotton yarn, as the government has already taken some preventive measures to curb export of cotton yarn.
"On the protest of value-added textile sector, the government has initiated monitoring of cotton yarn export by registering yarn export orders, and the Trade Development Authority of Pakistan (TDAP) is getting cotton yarn export orders registered before shipment of the commodity for past one week," they said.
They said that the government is closely monitoring export of cotton yarn and decided to take some action in case of massive increase in the export of commodity. However, imposition of a ban and regulatory duty is not included in the under-consider actions.
"In case of high growth in the cotton yarn export, the ministry of textile may impose a ceiling on its export by binding the exporters not to export the commodity more than the last fiscal year export. However, they said that there is a massive space for export of yarn and the ceiling may be imposed in the third or fourth quarter of the current fiscal year, if the export of commodity would surge to new peaks.
Sources said that some positive results of registration of cotton yarn export orders have been witnessed and the prices of yarn were gradually stabilising in the domestic market for last few days. Cotton yarn prices in the domestic market have stabilised during last three days as the spinning mills have been forced to get registered their export orders with TDAP.
"Although cotton yarn prices are stable in the local market since last Tuesday, the price of 20-single cotton yarn is still at Rs 880-900 per 10 pounds, which is all time high price in cotton trade history," sources said. They said that a meeting of textile policy implementation committee was held in Islamabad three days back, chaired by Textile Minister Muhammad Saeed Khan. The meeting was attended by representatives from value-added textile sector, besides government officials.
During the meeting, value added textile sector again demanded imposition of ban and regulatory on export of cotton yarn. However, the ministry turned down the demand and said that TDAP was already monitoring export of yarn and if the government observed that export was higher than last fiscal year, a ceiling would be imposed.
