Crisis surrounding yarn has not yet been solved, despite several policy
measures taken up by the Textile Ministry, to ensure yarn is available
at reduced rates..
Now, while the value-added textile segment complains about dearth in
yarn clubbed with increased yarn prices, spinning industry owners are
blaming the government of fraudulently playing with the open market
economy and denying the spinners opportunities for export, via
imposition of restrictions and duties on exports of yarn. .
During a meeting of the value-added segment with the Prime Minister,
Yousuf Raza Gilani and Textile Minister, Rana Farooq, they demanded
that, the government continues with the imposition of duty on yarn. .
In addition, they have also demanded for a three years freeze on about
Rs 300 billion debt of the value-added segment and a bailout package,
just like the defunct industries received during the late 90s..
.
But, the certain associations did meet the Finance Minister to get an
assurance that, the temporary restrictions and duties on exports of
yarn, which expire on July 26, are not given an extension. But they did
not receive any, as he refrained from giving any promises..
.
Deliveries made in the month of June are at a much lower rate than the
rates at which yarn is currently being supplied to the local industry.
This is because, exports of yarn carried out in the last week of June,
were made due to the Letters of Credits (LCs), which were opened prior
to May 13, as shipments post it were held back for over a month by the
government. .
.
The current export price of yarn in the international market stands at
Rs 127 a pound as compared to Rs 115 a pound, which was practiced in the
domestic market..
.
As per a spinner and knitwear exporter, the apparel segment was under
tremendous stress over the last nine months, owing to contracts, which
were inked at reduced prices. But the new deals are being inked at 20
percent higher prices. Moreover, with the current rate of cotton at Rs
6,700 a maund, the cost of producing yarn has also surged to Rs 120 a
pound..
.
As of now, spinning industry owners are supplying yarn to the domestic
industry at a rate of Rs 110-115 per pound, which has lead them to
register a daily loss of Rs 300,000 – 500,000, in anticipation that
things might change post July 26″
Date:7/4/2010
Source:www.adsaleata.com