Cotton prices on the domestic market are continuously increasing. Pakistan's yarn is cheapest in the world but the value added sector considers it costlier. High prices of cotton and yarn in Pakistan may not allow the made-up exporters to meet export orders, worth $1.5 billion for Christmas, from the European and American apparel markets. Pakistan's apparel industry would see further decline in exports in case no step is taken to check cotton and yarn exports, concerned quarters said.
The government should take effective steps to control the cost of doing business as it is continuously soaring without showing any sign of relief to the industrialists, which would force a large number of apparel units to close down leaving thousands of workers jobless. Spokesman of textile manufacturer have expressed apprehension over the rising raw cotton prices, which might upset the export target for this fiscal year. He said whenever suppliers fail to fulfil commitment; buyers immediately shift their orders to other countries.
He said that hoarders and middleman were busy piling up stocks of cotton to sell it at higher prices. He said this situation was detrimental to the exports and economy. Hosiery Manufacturers and Exporters Association (PHMA) demanded of the government to impose 10 percent regulatory duty on yarn export and fixed the export quota for smooth working of Pakistani textile industry and protect the investments and livelihood of thousands workers.
It was pointed out that he new exporters and small powerloom owners were the worst hit. Those who had a chain of business purchasing yarn on behalf of their foreign buyers are also in hot-waters due to uncertainty in the market. It was also mentioned that there were a few exporters who could fulfil their export consignments. However, over 90 percent exporters, who used to purchase cotton yarn on day to day basis, have been facing problems in the wake of present unprecedented increase in the prices of cotton yarn.
He said that after the increase in the prices of cotton yarn, a number of small powerloom units were on verge of closure because the exporters were not in a position to buy yarn at present from the market at heavy prices to fulfil prices. He demanded of the government to immediately impose a ban on the export of cotton to stabilise its prices and to reduce the export of cotton yarn.
All Pakistan Textile Mills Association sources the value added exporters had sold their production four months in advance and did not cover them up with yarn purchase. "Now, when prices have increased, they are demanding a reduction in them. Since it is business, they should accept the loss as well."
Some manufacturer and exporter made it clear that the we are not against the export of yarn but as part of this country and its economy, all the stakeholders should sit together and develop a theory, so that neither the industry faces losses nor should the country suffer.
APTMA and PHMA urged the Prime Minister Yousaf Raza Gailani to take cognisance of the situation and take immediate remedial measures to save the export of the country and he demanded of the government to immediately interfere in the matter of yarn crisis to save national exports of cloth, knitwear, bed-wear, towel, and garments etc. He demanded the authorities concerned should realise the gravity of situation and firmly control the prices of raw cotton and yarn.
Comments
Comments are closed.