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Massive floods upset spinning sector
Aug '10
As rain waters flood country's cotton cultivating regions, Pakistan has started facing dearth of cotton, which has compelled the spinning industries to operate at a level much lower than its installed capacity.

Heavy floods in the country, especially in the cotton growing areas, have exhausted plans of the spinning industry to utilize its utmost capacity, which owing to the regulatory taxes on exports of cotton yarn, was at its bare minimum for quite a few months.

A spinning mill owner said that, while they were all set to gain from the post regulatory levy scenario, floods wiped out their plans to recoup the losses that they suffered on account of the imposition of regulatory duty on exports of cotton yarn.

Further an expert stated that, presently all the roads in the region are either totally submerged or taken away by flood waters, which has rendered it very difficult for them to deliver cotton from ginning mills to spinning units.

Spinners are now faced with severe cotton shortage because of floods. The problem has further increased as earlier, owing to uncertain conditions, they could not accumulate cotton stocks, informed the expert.

Also earlier, spinners generally used to import cotton to fulfil their requirements but, this year they did not do that as well, as there prevailed a restriction on exports of cotton yarn. All this has eventually lead to local shortage of cotton, added the expert.

Fibre2Fashion News Desk - India

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