Thousands of powerloom factories have been forced to close down due to exorbitant hike in prices of cotton and PC yarn, resulting from indiscriminate export of yarn.
This was disclosed by All Pakistan Cotton Power Looms Association's (APCPLA) Chairman, Rana Ikhlaq Ahmad and Vice-chairman Muhammad Akarm Ghauri, talking to newsmen here on Friday.
They said that prices of yarn had risen continuously during last eight months yet no tangible step had been taken so far by the government to control the prices.
Quoting statistics, they pointed out that 57 million kg cotton yarn was exported in January 2004, while 56 million kg cotton yarn in February 2004 as against 38 million kg average of these two months in preceding year 2003. Thus 19 million excess cotton yarn was being exported monthly this year, they stated.
This export of cotton yarn was adversely affecting the domestic industry in shape of raw material shortage and price hike, they mentioned.
Consequently, the cost of production of textile products was rising and it was becoming unfeasible to manufacture cloth on power loom.
As a result of this, indiscriminate export of yarn and price hike of raw material nearly 10,000 power looms had been forced to close down in the country, they claimed.