The Ministry of Textile is likely to permit yarn export with certain conditions and a minimum price cap of $3.5 per kilogram.
After a two-day discussion with the value-added textile sector and spinners, the ministry has not declared any decision, but certain limitations are likely to be imposed while allowing yarn exports and a notice with this respect, will most likely be released in the market within two days.
Spinners and value-added textile segment committees, together with the Ministry of Textiles, Textile Minister, Rana Farooq, Secretary Textile, Dr Waqar Masood and Commissioner of Textile, Idress Ahmed, carried out discussions for two days at Karachi. Stakeholders too were present for the two-day discussion and after hearing all parties, Farooq held-back his ruling.
Spinners, during the meet, urged the ministry to permit value-added cotton yarn exports with a price limitation of $3.5 per kilogram without any quota and impose 15 percent regulatory duty as well.
But, they have so far, settled only on 15 percent regulatory duty imposition on other cotton yarn exports, the cost of which would be less than that determined earlier. So far, the ministry has settled in, just fundamentally, to spinner's suggestion and might permit cotton yarn exports at the already fixed price.
Spinners also suggested, with respect to imports of raw cotton that, in case raw cotton was brought in to the country under the DTRE scheme and re-exported in shape of cotton yarn, then 15 percent regulatory duty should be the wedge on the value-addition price.
Currently, Letter of Credit (LCs) of approximately 35,000 tons of cotton yarn have been
confirmed by foreign purchasers, therefore, spinners during the meet have also demanded protection for LCs, as Pakistan's repute was at stake, if delivery of the already booked orders were not made.
During negotiations, the ministry assured to provide some relief to exporters on the already booked orders and the LCs of which have already opened.
Fibre2Fashion News Desk - India