Value-added textile sector has proposed the government to ban exports of coarse yarn and register spinning mills with the Ministry of Textile Industry to avoid local cotton and yarn shortage in future. The proposals were tabled in a meeting held in the Textile Ministry here on Thursday, in which representatives of all value added textile associations participated.
On the recommendation of the senate standing committee, Textile Ministry has started consultations with all the stakeholders to ensure cotton and yarn availability for the domestic industry. All Pakistan Textile Mills Association has already submitted their proposals to the Ministry in a meeting on Wednesday.
Value added sector proposed that a system should be devised under which spinners should be registered with the Ministry. Only registered units should be allowed to deal in cotton and yarn. In this way only authorised and registered spinners and ginners would be able to deal in cotton and yarn respectively and all deals will be documented. Ministry would have proper data of trading in cotton and yarn. Presently such data is not available with the Ministry and once data of the commodity exported, purchased by local manufacturers and by the value added textile industry is recorded it will be readily available.
Government should devise a mechanism whereby the growers are assured a reasonable margin of profit with a buying guarantee by the government. This would motivate the growers to maximise yield in future, value added sector argued. Javed Balvani, co-ordinator of the value added sector said that India's textile exports are 12% of their total exports and they have 4.7 million bales surplus of cotton yet they control exports of cotton by suspending the registration in the event of shortage in the domestic market and place ban on cotton exports.
Pakistan textile exports are 54% of total exports of the country. Crop production of the country was 12.2 million bales against its requirement of 14 million bales during 2009-2010, ie short by 1.8 million bales, yet no step was taken to control and regulate the export of a critical raw material. He said India too is signatory of WTO but for the sole purpose of protecting their foreign exchange earnings and employment opportunity India does not support free trade and places restrictions from time to time.
He further said that China's total export of textile is $161 billion, which is 13% of their total exports. China's total cotton crop is 40.9 million bales, yet China controls its exports of cotton and yarn to protect its local industry. Representatives of the value added sector argued that unbridled exports of cotton yarn both of fine and coarse counts and hoarding are the major reasons for artificial shortage of cotton yarn. Builders, scrap dealers and sundry investors have come into the business and are hoarding cotton and cotton yarn, which is one of the major reasons for the shortage.
They further said that the Ministry of Agriculture under which cotton growing is administered has not done been successful in increasing the yield and production. All matters related to cotton growing are directly related to textiles, therefore, cotton should be administered under the Textile Ministry. They further proposed that a Research Cell should be established in the Textile Ministry to increase yield of cotton by co-operating with, motivating and monitoring the farmers to produce more.