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Ginners face export embargo on cotton lint

15 Feb '07
1 min read
Recently, Government banned five cotton ginners from exporting because they were not following the 70-30 percent rule.

According to rule, companies allowed to export cotton lint should provide 30 percent of their product to domestic market.

Initially, export ban were imposed on 15 registered ginners, but, ten companies were allowed to exports as they were complying with rule.

The companies banned from exports are Grafax, Alliance Ginneries, Context, Zesa Enterprises and New Cabview.

As per the investigation, these five companies were exporting all their lint.

According to sources, domestic industry was facing scarcity of lint and this has adversely affected local textile companies.

However, experts believe that unviable exchange rate has forced these companies to export goods completely.

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