Official
sources said that the government continues to make efforts for
reconciliation between spinners and value-added textile sector, which
are at loggerheads over the capping of monthly yarn export quota at
35,000 tonnes from 50,000 tonnes. Spinners demand that the quota should
be lifted, while value-added sector wants it to stay to ensure
availability of yarn at lower rates”.In the meantime, stockpiles
of domestic yarn have dwindled, as they do every year by the end of
March. This time, the demand outstrips the supply by 3.3 million bales.
The gap is being filled by the imported cotton ..Ejaz Gohar,
chairman of All Pakistan Textile Mills Association Punjab, said millers
opened some letter of credits for cotton import in December 2009, but
the bulk of orders, which had to be placed in January-March 2010
quarter, were withheld due to the uncertain market conditions. He
predicted tough times for the value-added sector from mid-April to June
when 70 per cent of the mills would be without cotton ..Pakistan
Readymade Garments Manufacturers and Exporters Associationís former
chairman, Pervaiz Hanif, blamed the wrong government planning for the
crisis ..He regretted that although the government knew that the
cotton production in the country was short, it allowed export of almost
800,000 bales of cotton. The Trading Corporation of Pakistan should
have intervened in the market to boost cotton rates and prevent its
exports, he said ..Leading cloth exporter Adil Butt said the
value-added units, that purchased yarn first and then export orders,
have survived the crisis. However, majority of small and medium units
do not have the capability to stock yarn in advance and when the yarn
rates increased, they faced problems, he said ..Pakistan Hosiery
Manufacturers Association former chairman M.I. Khurram said the
value-added sector has come under pressure due to self-inflicted
wounds. They tried to keep yarn rates low against the principles of
free-market economy, he said .
Date:4/11/2010
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