Huge wool export to India doubles price in local market: LCCI

The Lahore Chamber of Commerce and Industry has urged the government to help stop wool export to India, as the massive export is not only creating an acute shortage in the local market but also pushing the carpet industry to the wall following substantial increase in the wool prices.
The LCCI President Shahzad Ali Malik after having a meeting with the delegation of carpet manufacturers said that the wool export to India has doubled the price in a short span of time in the local market. The delegation was led by the LCCI former President Shahid Hassan Shaikh while the LCCI Executive Committee former members Sohail Shamsher Ali and Mohsin Banday were also present on the occasion.
Malik further said that the huge increase in the wool prices would lead to an imminent disaster of the hand knotted carpet industry of the country, which engages a work force of more than two million skilled workers. He said the carpet industry in Pakistan, already fighting for its survival, is now confronted with the issues like wool shortage and high prices phenomenon. "With 100 percent increase in the prices of raw material, how the carpet industry can compete in the international market" he added.
The carpet manufacturers/exporters also requested the LCCI President to invite the government and Trade Development Authority of Pakistan's attention to take serious note of the situation. The government should immediately take the measures to control the wool prices so that this disastrous situation could be averted, he said. It was also suggested that a serious action should be taken against all those engaged in hoarding/overcharging or exploiting the situation which otherwise shall not only deprive the country of big foreign exchange earnings but also add to the miseries of the labour force engaged in the carpet industry.
It was also suggested that the government should take steps to encourage sheep farming to ensure better production of wool. Besides, a committee should be constituted to probe in the matter and enforce immediate measures so that the escalating trend, which was never witnessed before and is unprecedented in the history of Pakistan could be stopped. Both the business leaders urged the government to formulate a policy for the revival of all sick industries in the country. Speaking on the occasion, the LCCI former President Shahid Hassan Sheikh said that as a policy decision, the government should also announce some incentives to encourage sheep farming in the country as only due to high prices of wool in the country carpet exports have registered a considerable plunge from $300 million to $100 million.