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October 25, 2020

Textiles tie new export orders to duty-free yarn import

Business

October 25, 2020

KARACHI: Value-added textile exporters on Saturday urged the government to allow duty-free import of yarn as rapidly rising prices of local fibres were weighing heavy on their competitiveness.

“During last three months, cotton yarn 30/1 prices have been increased by 17 percent. Therefore, the government must intervene to save the value-added textile exports,” said Muhammad Jawed Bilwani, Chairman Pakistan Apparel Forum and Mohammad Riaz Ahmed, Central Chairman, Pakistan Hosiery Manufacturers & Exporters Association in a joint statement.

They said it was alarming that as per USDA cotton statistics, during last decade, Pakistan's cotton production decreased approximately 35.42 percent from 9.60 million (480 pound) bales in 2009-10 to 6.20 million bales in 2019-20 due to sub-standard cotton seeds supplied to farmers.

As per USDA cotton statistics, India has increased its cotton production by 28.26 percent from 23 million bales in 2009-10 to 29.50 million bales in 2019-20. They said huge export orders were available with the value-added textile but exporters were unable to take orders due to unavailability of cotton yarn in the country on competitive prices.

“The government must immediately take notice of provision of sub-standard cotton seeds to farmers by the suppliers and strict action must be taken against them as exporters see it as an act against the interest of Pakistan,” the joint statement said.

They said the stakeholders should be allowed to import 32 single yarn and below without any duties and taxes and (the exporters, manufacturers and importers) be given full liberty to import it from any country till the scarcity of cotton yarn is controlled and required quantity of yarn is available in abundance in all Pakistani markets.

“The government should make it compulsory for the large spinning units having more than 30,000 spindles and production to grow their own cotton to manufacture cotton yarn and extend full support to them in this regard,” the two leaders suggested in the statement.

Pakistan's textile exports could not be enhanced without increasing the area under cotton cultivation and yield, they said urging the government to support cotton growers and provide them with free of cost top quality cottonseeds and purchase cotton from them at international rates.

“The government should also provide subsidy to those growers, who will increase the yield as well as cultivation area per hectare on yearly basis,” they said.