Don dump the anti-dumping duty please

The call from downstream textile manufacturers for the removal of anti-dumping duty on PSF seems to lack justification. Textile makers base their argument on the allegation that PSF manufacturers have formed a cartel - but frankly, the argument does not have strong enough basis.
The Competition Commission of Pakistan had already given its verdict in favor of the PSF manufacturers, clearing them of any wrongdoing or cartel formation.
What, in fact, needs to be understood is that unlike what textile makers say, PSF prices have no linkage with the cotton prices whatsoever.
To clear the misconception, there is a need to understand the pricing dynamics of both PSF and cotton. PSF, while being part of the textile chain, is, in technical terms, actually a part of the petrochemical chain.
Therefore, pricing of PSF is strongly influenced by movements in the price of crude oil futures and that of its derivatives - both of which, more often than not, move independently based entirely on their own market dynamics. PSF prices are dictated by PTA and MEG costs, which are the feedstock of the commodity. Hence any movement in feedstock has a direct impact on the PSF prices in the market.
On the flipside, cotton availability is dependent on natural factors such as climate, rain, pest attacks etc. Similarly, pricing of cotton yarn has nothing to do with that of PSF pricing as both have distinctively different usage.
Having said that, it is evident that current spike in cotton yarn rates is driven purely by cotton market dynamics, i.e. the regional supply and demand of cotton yarn with exceptionally low priced Pakistani cotton yarn being snapped up by regional buyers, which enticed local cotton producers to raise the price of commodity.
There is no denying that the local textile industry is facing serious threats with many players on the verge of closure due to all time high cotton prices.
Therefore, what needs to be done is to place an immediate ban on export of raw cotton instead of entertaining the call for lifting the anti-dumping duty from PSF.
Bear in mind that any step taken in the direction to lift the anti-dumping duty would mean Pakistan going against the WHO agreement, which is clearly unaffordable. Nor can we afford another value added industry, PSF, being sent to the guillotine? Certainly not.