The Pakistan Yarn Merchants Association (PYMA) and APTMA were on strike after imposition of 15 percent export duty on yarn exports by Cabinet Committee on Textile last Wednesday up to a period of July 12, 2010. A crucial meeting is also being taken place between federal textile minister and apparel sector, demanding ban on yarn export today…“The future course of action will be decided on the outcome of this meeting as there should be a win-win situation, otherwise July 12 is heading fast and in case of no result, the yarn exporters will face default in the international market”, member PYMA Shakeel Ahmad said. He said till date, yarn sector has faced around 35 percent losses on export side besides hundreds of L/Cs were hanging in balance…The APTMA and PYMA are hoping that the next meeting with federal textile minister and apparel sector following their Friday’s meeting will cast positive results on all segments of textile sector, earning 62 percent of the total export proceeding of the country. Ahmad said before quantitative restrictions on export of cotton yarn, its export share to the total textile sector was around 75 percent…After restrictions on yarn export, the export comes to around 53 percent and still a major foreign exchange earning segment of the textile sector, he added. He said, “Only 25 percent of the yarn is exported while remaining is always sufficient for the value added apparel sector in the country”…The country produces around 250,000 pound yarn per month while local consumption including downstream textile sector stands at about 200,000 pound per month…He said apparel sector was already enjoying number of facilities such as export refinance, LTFF and LTF-EOP, which was not available to the spinning industry. ..He said due to shutdown, around 1 million workforce in spinning and yarn sector rendered jobless, besides, the country was losing around $210 million per month in yarn exports. The spinning industry is operating and also competing in the export market even though, about 25 percent of the shortage of raw cotton is met through import.
Date:5/22/2010
Source:www.cotton247.com