‘Cotton yarn price hike affecting exports’

LAHORE: The Pakistan Readymade Garment Manufacturers and Exporters Association (PRGMEA) has said the sharp increase in cotton yarn prices by almost 20 percent has hit the export-oriented value-added textile sector hard.

PRGMEA (North Zone) senior vice chairman Sheikh Luqman Amin said that the unprecedented surge in cotton yarn rates during the cotton crop season is understandable, as the prices are usually at the lowest ambit these days.

Cotton yarn prices have increased by around 20 percent to Rs12,000/bag of 100 pounds from Rs8,000 due to cartelisation of local manufacturers who are holding the stock to create artificial shortage, he said. The PRGMEA senior vice chairman asked the government to take preventive measures, as the export target would not be achieved due to high energy cost and discriminating import duties on industry raw material.