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February 7, 2015

APTMA demands 15pc duty on yarn

Business

 
February 7, 2015

LAHORE: All Pakistan Textile Mills Association (APTMA) has demanded imposition of 15% regulatory duty on import of subsidised fine count cotton yarn, predominantly from India,
Chairman APTMA S M Tanveer, addressing a meeting on Friday, expressed concern over heavy influx of highly subsidised fine count cotton yarn from India, with more than 25 percent subsidy, that is affecting the viability of around 30 local mills.
Pakistan-based 30 mills have a combined production capacity of 6,000 ton/month while India is dumping subsidised 3,000 ton/month of fine count cotton yarn on an average. He said it is alarming to note that annual import of fine count cotton yarn from India reached 30,000 ton in 2014 against 6,500 ton in 2012. “India is capturing Pakistan’s domestic market, as the end product of fine count cotton yarn is meant for domestic consumption,” he said. According to the import data of first six months of current fiscal year 3,000 ton/month of fine count cotton yarn entered the market. “Around 90 percent of the imports originated from India have extended unstructured rebate to the manufacturers,” Tanveer said. He urged the Ministry of Textile Industry to protect the textile industry. “India might start sending processed fabric in the long run in case no immediate action is taken against the entry of fine count cotton yarn in the market,” he warned. However, he said, the import under duty and tax remission for export (DTRE) or manufacturing bond should be exempted from Regulatory Duty.
A recent study, on the impact of subsidy on production of fine count cotton yarn in Gujrat, stated that the Indian manufacturers received subsidy of Rs26.72 per kilogram in the form of interest rate subsidy, electricity subsidy, VAT benefit, consumer sales tax on yarn, transportation and power cost besides the central subsidies.