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Duty on yarn exports could shut spinning mills
18 May '10
2 min read
Terming value-added textile sector's demand for Regulatory Duty imposition on exports of cotton yarn as an illogical demand, a spokesman of All Pakistan Textile Mills Association (APTMA) warns them about closure of the country's spinning mills.
He further added that, the value-added textile sector's demand for such a duty imposition when it is already procuring yarn at lower rates from the country's most efficient spinning sector, as compared to its immediate competitors such as India, China and Bangladesh, was irrational. More so, this is coming at a time when cotton prices are already at $0.95 per pound in the global market, said the spokesman.
It is not feasible for the spinning industry to bring in cotton at higher prices from overseas markets and provide yarn to the domestic ancillary industry at subsidized rates, he said, suspecting that the unscrupulous elements of the industry are providing wrong facts and figures to the Ministry.
According to data released by the Federal Bureau of Statistics, during the period January-March 2010, exports of value-added textile sector increased by 20 percent in terms of quantity as compared to 10 percent decline in yarn exports.
Regulatory Duty imposition on exports of cotton yarn will force around 70 percent of the spinning mills to witness closure, pointed the spokesman.
Around 60 percent of the value-added exports are manufactured from APTMA members with all sub-sectors including fabric, processed clothes, towel, knitwear, bed wear and woven garments. While many oppose restrictions on yarn exports, there are those, who have vested interests behind imposition of this restriction.
He further added that, the value-added textile sector's demand for such a duty imposition when it is already procuring yarn at lower rates from the country's most efficient spinning sector, as compared to its immediate competitors such as India, China and Bangladesh, was irrational. More so, this is coming at a time when cotton prices are already at $0.95 per pound in the global market, said the spokesman.
It is not feasible for the spinning industry to bring in cotton at higher prices from overseas markets and provide yarn to the domestic ancillary industry at subsidized rates, he said, suspecting that the unscrupulous elements of the industry are providing wrong facts and figures to the Ministry.
According to data released by the Federal Bureau of Statistics, during the period January-March 2010, exports of value-added textile sector increased by 20 percent in terms of quantity as compared to 10 percent decline in yarn exports.
Regulatory Duty imposition on exports of cotton yarn will force around 70 percent of the spinning mills to witness closure, pointed the spokesman.
Around 60 percent of the value-added exports are manufactured from APTMA members with all sub-sectors including fabric, processed clothes, towel, knitwear, bed wear and woven garments. While many oppose restrictions on yarn exports, there are those, who have vested interests behind imposition of this restriction.
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