The open-end cotton yarn spinning units are faced with a crisis. The reason being described is over-production of yarn due to the establishment of a large number of open-end spinning units throughout the country. High prices of cotton waste, being the major raw material and other input costs for manufacturing of yarn have further deepened the crisis. Zonal Chairman of Sindh and Balochistan, Pakistan Open-end Spinners Association (POESA) Abdul Rasheed, in a statement, has appealed to the government to take a serious notice of this crisis.
He said during the past several years, no serious attempt had been made or policy framed for the establishment of this industry, including searching of new markets for the open-end yarn produced in bulk in the country.
The local installed capacity and consumption of looms producing canvas and towels was lower than the open-end yarn produced by the installed open-end spinning units spread all over the country, especially in the province of Sindh and Punjab, he said.
Rasheed said that the production capacity of open-end yarn now being produced by the open-end spinning units had become surplus as regards the country's overall consumption.
The POESA Zonal Chairman has drawn the attention of the Ministry of Textiles and Ministry of Production to immediately intervene and attend to this issue or else a large number of open-end spinning units in the country will be forced to close down.
He said this would result in unemployment of a large number of textile workers, including the loss of millions of dollar investments made in this sector.