Home / Knowledge / News / Textiles / PYMA's SOS to save downstream textile industry
PYMA's SOS to save downstream textile industry
25
May '16
The Pakistan Yarn Merchants Association (PYMA) has appealed to the government to save the downstream textile industry as a turf war rages in the yarn sector.

In a letter to Finance Minister Ishaq Dar PYMA Central Chairman Muhammad Usman pointed out that the local manufacturers of polyester filament yarn could only meet needs of 25 per cent of the downstream industry. Despite the fact that investigation into injury is currently underway by the National Tariff Commission (NTC) to review anti-dumping duty, local manufacturers are lobbying to impose regulatory duty, he said.

The PYMA chairman said these attempts by the local manufacturers will put the entire weaving and knitting industry in a grave situation by increasing the cost of their basic raw material (yarn), and make the entire downstream industry uncompetitive. The results will be disastrous for exports which are already suffering on account of high energy costs.

“The not-so-noble intentions of the few local manufacturers are self-evident. They want to create a monopoly-like situation to give themselves short term benefits at the expense of the very large downstream sector, which employs millions of people and is the backbone of our economy,” Usman said in the letter.

In 2008, the NTC had imposed anti-dumping duties (max 18 per cent) on the filament yarns originating from Thailand, Malaysia, Korea and Indonesia. At that time, there were about 17 local manufacturers of polyester filament yarn and there was no import of polyester yarn from China.

Despite the fact that the anti-dumping duty was levied for over eight years, the number of local manufacturers shrank into four units and their market share decreased. The long-term solution for local manufacturers is to modernise and upgrade their plants and enhance capacity to achieve economies of scale. Regulatory Duty is not the right solution, the PYMA Central Chairman said.

He urged the government that fabric imports from any part of the world should be allowed under legal channel of import which includes Letter of Credit (LC) or Documents Against Payments (DP) because the goods payments via banking channels can save the local downstream industry.

The PYMA chairman also said that textile package was envisioned by the government in 2005 in which all stakeholders agreed that in order to bring fabric trade under legal umbrella, the maximum duty on fabric should not exceed 15 per cent. Hence, the duty on yarn was fixed at 7 per cent but over the years, the duty has escalated to 11 per cent without any reason, causing distortions and making raw material for the downstream industry more expensive.

“We suggest that the yarn duty should be rolled back to 9 per cent to give benefits to the weaving and knitting industry,” he added. (SH)

Fibre2Fashion News Desk – India


Must ReadView All

Apparel/Garments | On 25th Sep 2017

Vietnam textile sector to gain if EU FTA gets ratified

Experts feel the Vietnam-European Union (EU) free trade agreement...

Apparel/Garments | On 25th Sep 2017

AAFA urges US govt to plug lacunae in military procurement

The American Apparel & Footwear Association (AAFA), an alliance of...

Apparel/Garments | On 25th Sep 2017

Amazon trying to enter Turkish home textile product market

Amazon has noticed Turkey’s potential in e-commerce and is discussing ...

Interviews View All

Headhonchos
Indian fashion industry

Cotton consumption will keep growing in the Indian fashion industry

Angelina Francesca Cheang
MY ANJE

'Consumers in the age-group 21 to 38 are driving the activewear trend'

Rahuul Jashnani
Jashn

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

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Johan Berlin
InvestKonsult Sweden AB

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

Sanjukta Dutta
Sanjukta's Studio

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

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

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

September 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


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