Aptma rejects ban on export of yarn, cotton

LAHORE (PPI) - The All Pakistan Textile Mills Association (APTMA), in its Extra Ordinary General Meeting, has unanimously rejected the proposal of nay ban on the export of yarn, urging the government to let the import and export of the commodity on free market mechanism.
According to a press release, an Extra Ordinary General Meeting (EOGM) of APTMA was held on Monday to discuss the raw material situation and prevailing market condition of yarn.
The meeting was largely attended by APTMA members, which was also simultaneously participated by the members from Karachi, Lahore, Peshawar and Multan through Video Conferencing System. The members strongly condemned the proposal of imposing any duty restriction on the export of yarn in view of the following:
Textile industry is working since last 14 years on the free market mechanism wherein cotton is freely importable and exportable. Textile spinning industry is short of 3.5m bales over the consumption and it had to meet the shortage through import of cotton whereas over 5 hundred thousand bales of cotton has already been exported. The spinning industry is paying export parity price of cotton to the farmers. In the interest of farmers, the industry will not suggest that cotton export should also be banned.
Similarly, there is shortage of Polyester Staple Fibre due to closure of Dewan Salman and consequently PSF manufacturers have further raised PSF prices, which is the major cause of rise in yarn price for power looms sector. Almost 100pc powerlooms sector consume blended yarn for making fabric for bedwears Current increase in yarn exports has been made from the carry over stocks by the industry.
The government should immediately take measures to revive 25pc closed/sick capacity to improve yarn availability.
The availability of yarn for the local consumption can be improved by introducing;
Immediate implementation of 1pc duty drawback to the sale of yarn and fabric to export houses. The government should immediately allow drawback to all domestic sale of yarn and fabric through Standard Purchase Orders (SPOs) on 1pc duty drawback basis.
Export re-finance facility on deemed export basis be extended to the manufacturers of yarn selling in domestic market under SPOs.
The meeting unanimously decided not to accept any intervention or restriction to be imposed on the export of yarn.