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Pakistani textile sector facing hydrogen peroxide shortage
31
May '18
Pakistani textile sector facing hydrogen peroxide shortage
Pakistani textile sector is facing a shortage of hydrogen peroxide, a chemical used as a bleaching agent for textiles, as local manufacturers reduced it supply in the country. The price of the chemical has also shot up, following which, the All Pakistan Textile Processing Mill Association (APTPMA) has asked the government to allow its zero-rated import.

Textile processing units are the major consumers of hydrogen peroxide and its manufacturers’ abrupt move of reducing its supply has created panic, said Saleem Parekh, central chairman, APTPMA. He has urged the commerce ministry to allow importing the chemical exclusively for textile processing on a zero-rated basis until the local supply picks up again, as per an APTPMA statement.

Parekh added that this decision of the local manufacturers of hydrogen peroxide will result in shortage and escalate the prices further. The shortage will in turn affect textile and garment exports and may force hundreds of processing units to shut down.

Pakistan requires 4500 million tons of hydrogen peroxide per month and 99 per cent of the share is consumed by the textile industry. Sitara Peroxide plant produces 2550 million ton/month, while Descon Oxychem produces 2400 million ton/month. The problem started after Sitara Peroxide cut down its production and Descon reduced its supply.

The shortage is causing high price fluctuations and may affect SMEs the most. Large scale manufacturers are importing hydrogen peroxide through the Duty and Tex Remission (DTRE) scheme. (KD)

Fibre2Fashion News Desk – India


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