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Pak trade bodies demand duty-free cotton yarn export

Oct '20
Pic: Shutterstock
Pic: Shutterstock
Pakistan’s value-added textile exporters recently urged the government to allow duty-free import of yarn as rapidly rising prices of local fibres are severely affecting their competitiveness. Cotton yarn 30/1 prices have increased by 17 per cent in the last three months, and therefore, the government must intervene to save value-added textile exports, according to the Pakistan Apparel Forum (PAF) and the Pakistan Hosiery Manufacturers & Exporters Association (PHMEA).

In a joint statement, PAF chairman Muhammad Jawed Bilwani and PHMEA central chairman Mohammad Riaz Ahmed said it is alarming that during the last decade, Pakistan's cotton production decreased by 35.42 per cent from 9.60 million (480 pound) bales in 2009-10 to 6.20 million bales in 2019-20 due to sub-standard cotton seeds supplied to farmers.

As per cotton statistics of the US Department of Agriculture, India has increased its cotton production by 28.26 per cent from 23 million bales in 2009-10 to 29.50 million bales in 2019-20.

The trade organisations said huge value-added textile export orders are available, but exporters are unable to accept due to unavailability of cotton yarn in the country at competitive prices, according to Pakistani media reports.

“The government must immediately take notice of provision of sub-standard cotton seeds to farmers by the suppliers and strict action must be taken against them as exporters see it as an act against the interest of Pakistan,” the joint statement said.

They demanded the stakeholders should be allowed to import cotton yarn from any country till its scarcity is controlled and the required quantity of yarn is available in abundance in all domestic markets.

“The government should make it compulsory for the large spinning units having more than 30,000 spindles and production to grow their own cotton to manufacture cotton yarn and extend full support to them in this regard,” the two leaders suggested in the statement.

Fibre2Fashion News Desk (DS)

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