Cotton growers, ginners oppose 15 percent regulatory duty on yarn export

Cotton growers and ginners have joined All Pakistan Textile Mills Association (Aptma) in protest against the imposition of 15 percent Regulatory Duty on export of yarn. In a press conference held at the Aptma Punjab office, both the Farmers Associate of Pakistan (FAP) and Pakistan Cotton Ginners Association (PCGA) leadership vociferously backed the Aptma in rejecting outright the Ministry of Textile Industry's decision of imposing 15 percent Regulatory Duty on export of yarn.
They termed the Ministry of Textile Industry's decision as a transfer-subsidy worth Rs 10 billion from spinning industry to so-called ancillary industry. They added that 60 percent of value-added textile industry is represented by Aptma, which has never asked the Ministry of Textile Industry to take such an irrational measure. Both Acting Chairman Aptma Seth Akbar and Chairman Aptma Punjab, Gohar Ejaz said that the Aptma members have unanimously decided to observe strike twice a week in order to curtail production of yarn rendered surplus due to the irrational decision of the Ministry of Textile Industry.
They termed May 13 as a Black Day in the history of textile industry of Pakistan when the Ministry of Textile Industry imposed 15 percent regulatory duty, resulting into a surplus of 50,000 tonnes of yarn per month with no buyers in the local market. It means a production value loss of Rs 3 billion approximately besides heavy workforce lay-off.
Moreover, said Gohar, this restriction on export has led to foreign exchange loss of $150 million per month. This attitude of Ministry of Textile Industry has forced textile spinning mills to cease production for two days a week, he added. Director FAP, Farooq Bajwa said the imposition of 15 percent regulatory duty has panicked the farmers' community at large. He termed the decision as a negation to the 1994 Free Trade Policy of Benazir Bhutto for the cotton growers.
He lamented that this ideal policy was scrapped by a single person sitting in the Ministry of Textile Industry. He said this decision actually showed hostility towards the cotton growers when new cotton crop is set to reach the market within next 15 days. "The farmers would burn their cotton crop if the spinning industry closes down," the Director FAP warned.
The PCGA representative warned that the PCGA would close down operations across the country if the government failed to withdraw the decision immediately. The leadership of Aptma, FAP and PCGA urged President Zardari and Prime Minister Gilani to intervene immediately to save to the textile industry.