Home / Knowledge / News / Textiles / Spinning sector operations idle since 20 days
Spinning sector operations idle since 20 days
03
Jun '10
With the textile spinning sector at a standstill since 20 days, owing to the ongoing rift between them, value-added textile sector and the Ministry of Textile Industry, about $110 million worth of excess yarn is lying at the manufacturing units, and about $12-15 million worth of goods are blocked at the Karachi ports.

A Regulatory Duty of 15 percent on exports of yarn was imposed by the Ministry of Textile Industry on May 12, following various attempts of limiting yarn exports by also imposing quota of 50,000 and 35,000 tons, respectively.

Also, availability of excess yarn at the manufacturing units is because of absence of an outlet in a situation wherein everything is either blocked or limited with duty imposition.

With the Regulatory Duty of 15 percent on yarn exports, the consignment of the material got wedged at the Karachi ports, thereby, leading to a huge loss of precious foreign exchange. All this comes at a time, when the government is being suggested to ensure co-ordination within the private sector, to increase the country's economic growth.

Consignments cannot be exported due to a standoff coming out of the immovable approach of the textile ministry officials. As a result, excess yarn stocks are getting piled up at the manufacturing units.

The All Pakistan Textile Mills Association (APTMA) and the value-added textile sector had conducted successful discussions on the controversial 15 percent Regulatory Duty imposition on yarn exports, which was chaired by the Federal Minister for Textile Industry, Rana Farooq Saeed. Also, present for the discussions, were members of the Pakistan Textile Exporters Association.

It was for the first time, that all three parties agreed on the subject of yarn availability in the country, for the value-added textile sector. As per the agreement, made between the three parties, there would be no regulatory duty imposition on yarn exports earning $3.5 per kilogram or above.

Similarly, an all-party agreeable decision was also made, for the Letters of Credit (LCs) that were opened before May 12, when the Regulatory Duty on yarn exports was imposed. These LCs will be outside the range of the Regulatory Duty.

In addition, no quota too, will be imposed on yarn exports. But all other terms and conditions, with respect to yarn exports, will have the 15 percent Regulatory Duty imposition on them. This arrangement will come to an end on July 12, 2010.

Fibre2Fashion News Desk - India

Must ReadView All

Apparel/Garments | On 23rd May 2017

Apparel, footwear use may rise by 63% in 2030: Report

The apparel and footwear consumption is projected to rise by 63 per...

Apparel/Garments | On 23rd May 2017

Gap Inc earns $3.4 bn in net sales in Q1 FY17

Gap Inc's net sales for the first quarter of fiscal year 2017 were...

Textiles | On 23rd May 2017

Grasim's VSF business net revenue up 12% in Q4 FY17

The viscose staple fibre (VSF) business of Grasim Industries has...

Interviews View All

Rashi Menda
Zapyle

Every fifth sale we make on Zapyle is a repeat purchase

Rahuul Jashnani
Jashn

‘Online economy has changed the whole dynamics of buying habits.’

Stefan Warnaar
Peak to Plateau

People are willing to pay for quality and performance

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
May 2017

May 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search