APTPMA concerned over price hike, shortage of hydrogen peroxide

Textile processing industries are the backbone of value-added textiles exports, which are one of the major consumers of Hydrogen Peroxide, have voiced concern over its artificial price hike and shortage of hydrogen peroxide in local market.
All Pakistan Textile Processing Mills Association (APTPMA) expresses with utter surprise that the local manufacturers of Hydrogen Peroxide (HP) has abruptly reduced the supply of hydrogen peroxide in the country which has created a panic amongst our member units who are the one of the major consumers of HP. This hasty step, which appears to have been taken at the behest of local manufacturers of this essential item of basic raw-material in the country, in gross contravention of the universally acclaimed norms of monopoly and cartels, is likely to cast devastating repercussions upon the overall national economy.
Saleem Parekh, Central Chairman APTPMA in a press statement issued by APTPMA Head Office, Faisalabad, said that hydrogen peroxide is used as a basic raw-material by the textile processing units. This hasty step, on part of local manufacturers is bound to create further artificial shortage, and escalate the prices of Hydrogen Peroxide. Shortage of Hydrogen Peroxide would adversely affect the export of textile fabrics/ garments and deprive the country of valuable foreign exchange to the tune of billions of rupees, besides closure of hundreds of textile industrial units, and would throw a large number of wage-earners out of jobs.
In a recently meeting held in the office of Textile Commissioner Organization under the chairmanship of Ahmed Bakhsh Narejo, Textile Commissioner, Ministry of Textile & Industry, which was attended by the all stakeholders except M/s Sitara Peroxide.
The country's total demand of Hydrogen Peroxide is 4500MTons/Month, out of which 99 per cent is consumed by textile industry. There are two plants of this chemical in the country, namely Sitara Peroxide having a production capacity of 2550 MTo/month & Descon Oxychem, 2400 MTo/month respectively.
The demand of Hydrogen Peroxide for textile industry of northern zone (Punjab+KPK) is about 2200 MT/month whereas it is about 2300MT/month in southern zone (Sindh+Balochistan); total demand of the country is about 4500MT/month.
It is learnt that, M/s Descon Oxychem is supplying 1175 MT/month out of its total production of 2760MT/month to south zone which is 42% of its production, on the other hand M/s Sitara Peroxide having total capacity 2550MT/month is producing only 1780MT/month which is only 70% of its full capacity. Out of its current production of 1780 M.Ton/month, it is supplying only 200 M.Ton/month to south zone which is only 11%. Hence total supply to south zone is 1375 MT/month, ie a shortage of 925 MTon/month to the tune of about 60% being faced by south zone textile industry.
Due to this acute shortage, the price fluctuation is very high & the situation may compel the SME sector for closure, whereas, the LSM are surviving by importing through DTRE, which impart Trade Bill.
Saleem Parekh, Chairman APTPMA emphasized that TCO should intervene & contact M/s Sitara Peroxide & Press M/s Sitara Peroxide to bring its unit in full swing and ensure an un-interrupted supply of Hydrogen Peroxide to the South zone in the true sprits.
Adil Akber, Business Manager South & Exports, M/s Descon Oxychem seconded the grievances of textile industry of south zone. He informed that, in view of critical situation, they has increased their production capacity to 10 percent but it is still insufficient to meet the demand. He also informed that they are investing Rs 1.5 Billion to increase their capacity to 25% in 2019.
APTPMA Chief Saleem Parekh has sought permission from Ministry of Commerce to import of Hydrogen Peroxide for textile industrial use on zero rated duty basis till time local supply is back to normal in terms of price and delivery e.o.m.