Vice Chairman FPCCI Standing Committee on Textile Ancillaries Mian Faraz Alam has said that abrupt reduction of yarn export quota from 50,000 to 35,000 tons per month is a biased decision and Ministry of Textile should give equal business opportunities to both spinning and value added sectors.
Talking to journalists, he said instead of providing environment of free economy, Ministry of Textile imposed restriction on export of cotton yarn at 50,000 tons per month and now without any consultation with stakeholders it reduced it further to 35,000 tons per month sans realising what would happen if export orders shipment could not dispatch within specific time at a time when cut-throat competition is already prevailing globally in this sector.
Faraz said cotton prices had risen by 60pc in the international market. It was internationally priced at 50 cents per lbs which has increased to 80 cents per lbs now. The value-added sector, the sole beneficiary of Ministry, was already the recipient of 20pc yarn price decrease.
He urged the Ministry of Textile not to support value-added sector at the cost of spinning sector, rather the government should support it directly from its own resources. He was of the view that value-added sector is already enjoying different supports like duty drawbacks, export re-finance etc and if imposition of quota restriction on yarn export would not be lifted, country wouldn't only deprive of valuable foreign exchange but also thousands of families would starve due to further unemployment, he added.
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