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Mills spin record production of yarn in Dec
Jan '10
Spinning mills of the country produced 243,500 tons of yarn in December 2009, to fulfill the requirement of ancillary industry, and set a record. Adequate gas supply to the industry under Gas Load Management Program 2009-10 and exemption from power load-shedding, allowed mills to manufacture the huge quantity of yarn.

Availability of 243,500 tons of yarn per month is more than double the actual domestic requirement of 110,000 tons of yarn per month from sectors such as home textile, knit-wears, woven garments and towels, said All Pakistan Textile Mills Association (APTMA) Punjab Chairman, Mr. Gohar Ejaz.

Increase in prices in the domestic and international markets restricted the exporters of value-added sectors from meeting their export commitments. Price hike in cotton, from Rs. 3,500 per maund to Rs. 4,800 per maund in local market and from 59 cents per lb to 75 cents per lb in the global market, shot up yarn prices.

APTMA Chief demanded of the government to provide relief to the value-added sectors under the Textile Policy initiatives, and to promote domestic supply of yarn to the ancillary industry, in a bid to resolve the issues related to rising prices.

He added that the domestic yarn supply to ancillary industry should be encouraged by offering duty-drawback facility at five percent of sales value to yarn manufacturers and exporters of value-added textiles, extending export refinance facility at 7.5 per cent on export basis to yarn manufacturers and selling of yarn to exporters of value-added textiles, and extending direct support by 5 percent for exporting value-added textiles as rebate against export of textile goods produced during October and December 2009.

Besides, he also urged the government to not introduce any intervention against free exports of textiles, cotton and yarn, which could prove to be damaging for the industry and exports, he concluded by saying.

Fibre2fashion News Desk - India

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