Interviews
Yarn & value-added sector at loggerheads
09 Dec '09
3 min read
In protest against export of yarn, the value-added sector has threatened to shut down its units or go to court. This was announced by Pakistan Apparel Forum (PAF) Chairman, Mohammad Jawed Bilwani.
The protest meeting organised on Monday was attended by representatives of 13 value-added textile associations including Pakistan Towel Manufacturers Association, Pakistan Readymade Garments Manufacturers and Exporters Association and Pakistan Hosiery Manufacturers Association.
They came down heavily on the Trade Development Authority (TDA) and accused it of succumbing to pressure from the All Pakistan Textile Mills Association and failed to implement a decision taken by stakeholders in a meeting on December 4.
The Chairman of PAF said that the country could only export $2 billion worth of cotton yarn while the value added textile sector could earn $10 billion from exports through value addition besides providing jobs to hundreds of thousands of people.
He said that in previous years, 80 percent of yarn was sold to the local industry and 20 percent was exported. But now the situation has turned for the worse as yarn is not available to the local industry at any price and this was affecting their dispatch schedule.
In a related development, Anwar Ahmed Tata, Chairman, All Pakistan Textile Mills Association (APTMA) clarified on Monday that, APTMA is not in favor of restricting yarn exports and the condition of registration of export of cotton yarn is time consuming and would hamper export.
He assured the government and the value- added sector that yarn is available in sufficient quantity to meet the requirements of the domestic value added sector and the agitation on the non-availability of yarn and imposition of ban on export of yarn has no grounds.
He added by saying that the spinning sector competes in export market, even though it also has to import raw cotton and also has not protested exports of raw cotton, though domestic production falls short of demand.
In support he said, whereas the total requirements of spinning industry is about 15.5 million bales (170 kg) per annum, the average production of cotton in the country is around 11.5 to 12.0 million bales.
In argument of the protest of the value-added sector he said that if the spinning industry can compete after importing about 25 percent of its requirement of raw materials, why could not the value added sector do the same.
He said that the government has earmarked more than 90 percent out of the Rs 40 billion incentive package in the Textile Policy for value added sector and was also enjoying number of facilities such as export refinance, LTFF and LTF-EOP which is not available to the spinning industry.
The protest meeting organised on Monday was attended by representatives of 13 value-added textile associations including Pakistan Towel Manufacturers Association, Pakistan Readymade Garments Manufacturers and Exporters Association and Pakistan Hosiery Manufacturers Association.
They came down heavily on the Trade Development Authority (TDA) and accused it of succumbing to pressure from the All Pakistan Textile Mills Association and failed to implement a decision taken by stakeholders in a meeting on December 4.
The Chairman of PAF said that the country could only export $2 billion worth of cotton yarn while the value added textile sector could earn $10 billion from exports through value addition besides providing jobs to hundreds of thousands of people.
He said that in previous years, 80 percent of yarn was sold to the local industry and 20 percent was exported. But now the situation has turned for the worse as yarn is not available to the local industry at any price and this was affecting their dispatch schedule.
In a related development, Anwar Ahmed Tata, Chairman, All Pakistan Textile Mills Association (APTMA) clarified on Monday that, APTMA is not in favor of restricting yarn exports and the condition of registration of export of cotton yarn is time consuming and would hamper export.
He assured the government and the value- added sector that yarn is available in sufficient quantity to meet the requirements of the domestic value added sector and the agitation on the non-availability of yarn and imposition of ban on export of yarn has no grounds.
He added by saying that the spinning sector competes in export market, even though it also has to import raw cotton and also has not protested exports of raw cotton, though domestic production falls short of demand.
In support he said, whereas the total requirements of spinning industry is about 15.5 million bales (170 kg) per annum, the average production of cotton in the country is around 11.5 to 12.0 million bales.
In argument of the protest of the value-added sector he said that if the spinning industry can compete after importing about 25 percent of its requirement of raw materials, why could not the value added sector do the same.
He said that the government has earmarked more than 90 percent out of the Rs 40 billion incentive package in the Textile Policy for value added sector and was also enjoying number of facilities such as export refinance, LTFF and LTF-EOP which is not available to the spinning industry.
Fibre2fashion News Desk - India
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