close
Advertisement
Can't connect right now! retry

add The News to homescreen

tap to bring up your browser menu and select 'Add to homescreen' to pin the The News web app

Got it!

add The News to homescreen

tap to bring up your browser menu and select 'Add to homescreen' to pin the The News web app

Got it!
April 9, 2021

PRGMEA seeks forensic audit of cotton dealers

Business

April 9, 2021

LAHORE: The readymade garments sector has requested the government to put a check on the yarn and cotton cartel, as it was affecting the export orders fetched by Pakistan, and to allow duty free import of the commodity for at least six months to keep manufacturers competitive in the market.

In a letter written to Prime Minister Imran Khan on Thursday, Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) alleged that a cotton and yarn cartel was affecting the exports of the value-added and readymade garments sector.

The letter urged to launch a forensic audit of yarn producers in line with the actions taken by the PTI government against the sugar lobby, as the “cotton mafia so far proved to be larger than the sugar mafia in the country”.

“The value added textile exporters are facing financial crunch, as their cost of manufacturing has jumped because of dollar depreciation against rupee from 164 to 153 and increase in prices of cotton yarn by more than 40 percent, besides 700 percent rise in sea freight charges,” it added.

It alleged that the cartel was using lower cotton production as an excuse to inflate rates, despite the declining prices of cotton in the international market.

PRGMEA Chief Coordinator Ijaz Khokhar talking to The News confirmed that the letter was written to the PM to break the cartel, which was affecting the country’s exports. Buyers were expressing concerns regarding the shortage of cotton in Pakistan, he said.

According to the letter, PRGMEA Central Chairman Sohail Sheikh has asked the government to take strict action against cartelisation and price manipulation.

“The Federal Board of Revenue (FBR) and Federal Investigation Agency (FIA) should conduct raids on the warehouses of yarn dealers who have been hoarding a huge quantity of yarn to create artificial shortage and manipulate the rates in connivance with the manufacturers, taking advantage of record low produce of cotton in Pakistan.” PRGMEA also said that import of yarn from India could also have shaken this cartel.