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Apparel & textile sectors at war again over RD extension
Jul '10
As the date of expiry, for the regulatory duty on exports of cotton yarn comes closer, value-added textile and spinning sectors are back in the war zone, for yet another discussion on the matter.

While the value-added textile segment is pushing the government to stretch the regulatory duty on exports of cotton yarn by one more month, as according to them it is a necessity, in the current situation wherein cotton yarn is scarcely available, to meet the demands of downstream textile sectors.

The spinning segment on the other hand, which is represented by the All Pakistan Textile Mills Association (APTMA) has commenced influencing people, to ensure that, the government does not agree for another extension of the 15 percent regulatory duty on cotton yarn exports.

Stressing further with their demands, APTMA members said that, a series of activities are due to follow in the coming week, as the highest government order will be roped in, so as to convince them that, demands made by the value-added segment is unrealistic, as there is no dearth of cotton yarn, to meet with the domestic industry's demands.

Commerce Secretary will be visiting APTMA members on Friday, July 16, 2010, to hear our spinning sector's viewpoint. More so, the Ministry of Finance will also be approached on the same, as spinners feel that, the ministry is responsible for destroying the cotton yarn production and exporting sectors of the country.

The alleged claims made by the value-added sector, about shortage of cotton yarn are false, as the increased export of ready-made textile goods adds credit to the spinner's viewpoint, informed APTMA, South Zone Chairman, Yasin Siddik.

This is so, as the exports of ready-made textile goods have surged quite significantly, which, as per Siddik, is definitely owing to availability of cotton yarn in the domestic market.

More so, Siddik also informed that, cotton yarn exports were limited till an extent that, in a span of two months merely 35,000 tons of cotton yarn were exported, thereby, ensuring that surplus quantity of cotton yarn was available for domestic downstream sector.

Spinning industry owners are of the belief that, it is unfair on part of the government to continue extending the regulatory duty, which was extended from June 30, 2010 to July 13 and then finally July 26, 2010.

This is because, first quota was imposed on exports of cotton yarn, and then the government imposed 15 percent regulatory duty, which merely burdened the spinning industry owners, as they lost quite a many export orders.

Fibre2Fashion News Desk - India

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