'NWFP spinners supply 300 tons yarn to textile sector'

PESHAWAR (APP) - Vice Chairman, All Pakistan Textile Mills Association (APTMA), Mohammad Taimoor Shah has said that spinning units of NWFP are supplying 30 to 35 trucks of cotton yarn to the value-added units of Faisalabad, Karachi, Lahore, Multan and Gujranwala on daily basis.
Talking to APP here on Wednesday, he termed the propaganda of value added sector as drama staged by vested interests. He said NWFP units were providing 300-ton yarn to the value added sector in the country.
He said a number of meetings have been held in this regard and yarn producers have also reviewed the situation, who are describing the hue and cry of the value added sector as baseless.
He said spinning units of Gadoon Industrial Estate are supplying yarn as per requirement of the market. They are ready to transport 400 to 600 trucks on daily basis to the textile plants in Faisalabad, Karachi, Lahore and other cities of the country, he added.
He said the crisis of shortage of cotton yarn is artificial and aimed at cut in the price of the commodity that is presently Rs.4800 per maund in the market and expected to climb up to Rs 5000 rupees per maund. He said due to free market mechanism price of the commodity has increased. He said spinning industry is also facing losses.
Taimoor Shah said the price of cotton yarn had increased at international level alongwith its raw material. He said 12 spinning mills of NWFP are producing about 7.2 million kilogram yarn.
He said power and gas load-shedding is badly affecting both spinning and value-added sectors of textile. The demand of yarn has increased while its supply has decreased affecting its production by 30 to 40 per cent, told the APTMA official. He said the buyers of cotton yarn were badly hit by the situation.
The natural gas supplied to the industry, he said, was insufficient due to which mills were not in position to run in full capacity and running with 60 per cent capacity. He said six hour-long power load shedding was being carried at Gadoon Industrial Estate while its consumption of power was less as majority of the mills were being operated on gas. He urged the government to keep vigilance on the supply of power and cotton to enable the smooth functioning of industry. He said as compared to previous years, the earlier announcement of the schedule of the load management of gas enabled the units to make alternative arrangements.
He said any ban on export of yarn would make negative impact on the economy. He appreciated the federal cabinet for rejecting demands for imposition of ban on the export of yarn. He also welcomed duty free import of the commodity to the country.
The vice chairman APTMA NWFP said all incentives of the textile sector are utilized by the value-added sector. He called for immediate implementation of the payment of 1 per cent duty drawback on the sale of cotton yarn in the local market announced in the National Textile Policy 2009. The government has sanctioned an amount of Rs.2 billion for this purpose.