KARACHI: The value-added textile sector seeking a ban on export of cotton yarn is to boycott today’s (Wednesday) meeting convened by the ministry of textile industry in Islamabad.

Meanwhile, the Pakistan Apparel Forum has pointed out that under the WTO rules restriction on export of raw materials is permissible to protect the domestic industry.

As a mark of protest leading apparel and home textile trade bodies would not be attending the meeting called by the textile minister to discuss the emerging trends in cotton yarn markets.

Annoyed over indifferent attitude of the policy makers towards shortage and high prices of cotton yarn in domestic market these trade bodies complained that even after holding several meetings with the ministry no serious measures had been taken so far.

The trade bodies mostly falling under the umbrella of Pakistan Apparel Forum and Pakistan Bedwear Exporters Association (PBEA) have in principle decided to boycott the meeting.

Their leaders during a press briefing held on Tuesday at the PHMA House said that the value-added textile industry was on the verge of closure because yarn was not available in the market and its price during last three months has on an average increased by 33 per cent.

They said that Pakistan and India became signatories to the WTO agreement in 1995 and China in 2001. Since then, both the countries had imposed ban on export of cotton and yarn on several occasions.

The leaders said that in 2005 China imposed heavy duties on export of 74 textile categories including yarn. India had been regulating export of cotton yarn through quantitative ceilings announced every year depending on their domestic supply and demand position.

They complained that cotton yarn below 32 single count was not available in the domestic market even on offering a high price and as a result value-added textile sector is unable to meet its export contracts.

The apparel and home textile exporters have already missed the Christmas and New Year season by not fulfilling their export contracts and if the situation was not corrected the spring season of 2010 would also be lost.

The cotton production in world has fallen by 4.5 per cent but its consumption is estimated to rise by 2 per cent during 2009-10. Similarly, they said that growth in consumption of different textiles and clothing is expected to increase.

Chairman PAF Jawed Bilwani called for imposing a ban or regulatory duty on export of cotton yarn below 32 single and said that only then the value-added textile industry could be saved from total disaster.

Chairman PBEA Shabir Ahmed in a separate statement demanded removal of anti-dumping duty on polyester fiber, which had been levied to protect the cartel of four units involved in its production.

By Parvaiz Ishfaq Rana
Wednesday, 18 Nov, 2009

Source: www.dawn.com