LAHORE: APTMA rebuts arguments regarding cotton yarn availability. APTMA is the premier trade organization of Textile Sector with members responsible for 60% by value of all direct exports.
APTMA membership includes representation from all segments of textile value chain: spinning, weaving, knitwear, garments, home textile etc, as well as vertically integrated concerns. It is highly regrettable that a purely economic issue has been politicized by some of the smaller trade associations. The real economic issue which has caused such an uncalled outburst is the revaluation of rupee from 165 to 152 against dollar which has squeezed the profitability of the entire value chain, including the yarn manufacturers, as explained below.
2) Monthly yarn production is 200,000 tons with consumption of 1.3 million bales per month approximately 15.5 million bales per year of cotton paying international prices to 10 million cotton farmers and buying 100 percent of Pak cotton produce competing with international merchants at international prices with free export policy of cotton by the government at 0 percent duty to ensure international prices to cotton farmers.
Out of which only 6 million bales were produced domestically, and balance had to be imported at international prices from USA Brazil and west Africa this year and 200,000 tons of Yarn production has been kept constant.
The spinning industry consumes 100 percent of 30,000 tons of Synthetic fibers produced in the country, 200,000 yarn is produced from cotton and synthetic fibers monthly out of which only 100,000 tons of yarn is consumed by value added per month balance is surplus exported in form of 60,000 tons of Fabric and 40,000 tons of yarn every month. There is no question of shortage of yarn or fabric as is surplus.—PR
Copyright Business Recorder, 2021