Representatives of All Pakistan Textile Mills Association (APTMA) and Karachi Cotton Association (KCA) on Monday demanded of the government to lift the ban on yarn export as it has hurt the spinning sector and cotton producers.
The further reduction to 35,000 tonnes per month from 50,000 tonnes per month is contrary to the assurance extended by President Asif Ali Zardari and members of the federal cabinet to stakeholders at a meeting in early January,APTMA Punjab zone Chairman Gohar Ejaz said.
He said APTMA members and other stakeholders were given the understanding that the matter would not be unsettled up to June 2010.
During January export figures showed robust export growth from December to January 2010 all across the value chain, which indicated that there was no underlying justification for reducing the quantum of yarn exports by another 15,000 tonnes per month.
It was reasoned that any support desired to be extended to the garment sector should not be done as a cross subsidy realised from the spinning sector rather the government should support them directly from its own resources, Gohar said.
It is reprehensible that while cotton was freely exportable there was export control on yarn. The yarn manufacturers had to import cotton at high international rates and it was not feasible to add value thereto and sell finished yarn at subsidised rates.
Already, the value-added sector was pampered enough by different supports like duty drawbacks, export re-finance etc.
KCA senior member Shakeel Ahmad said, cotton prices had increased by 60 percent in the international market to 81-82 cents per lb now.
The value-added sector, the most inefficient, was already the beneficiary of 20 percent yarn price decrease, he added.
There was strong opinion that shortage of cotton and simultaneous yarn export embargo would not only adversely affect the spinning industry but the textile sector and all stakeholders including ginners also, Ahmad said.
The only way out of the quagmire was the restoration of free trade mechanism and immediate end to all restrictions on export of yarn.
The further reduction to 35,000 tonnes per month from 50,000 tonnes per month is contrary to the assurance extended by President Asif Ali Zardari and members of the federal cabinet to stakeholders at a meeting in early January,APTMA Punjab zone Chairman Gohar Ejaz said.
He said APTMA members and other stakeholders were given the understanding that the matter would not be unsettled up to June 2010.
During January export figures showed robust export growth from December to January 2010 all across the value chain, which indicated that there was no underlying justification for reducing the quantum of yarn exports by another 15,000 tonnes per month.
It was reasoned that any support desired to be extended to the garment sector should not be done as a cross subsidy realised from the spinning sector rather the government should support them directly from its own resources, Gohar said.
It is reprehensible that while cotton was freely exportable there was export control on yarn. The yarn manufacturers had to import cotton at high international rates and it was not feasible to add value thereto and sell finished yarn at subsidised rates.
Already, the value-added sector was pampered enough by different supports like duty drawbacks, export re-finance etc.
KCA senior member Shakeel Ahmad said, cotton prices had increased by 60 percent in the international market to 81-82 cents per lb now.
The value-added sector, the most inefficient, was already the beneficiary of 20 percent yarn price decrease, he added.
There was strong opinion that shortage of cotton and simultaneous yarn export embargo would not only adversely affect the spinning industry but the textile sector and all stakeholders including ginners also, Ahmad said.
The only way out of the quagmire was the restoration of free trade mechanism and immediate end to all restrictions on export of yarn.
