Cotton yarn export: Aptma sees detrimental impact on spinning industry

While apprehending a cut in the export of cotton yarn by the government, All Pakistan Textile Mills Association (Aptma) has feared a detrimental impact on the spinning industry in case the Ministry of Textile goes with any decision like this in days to come.
Central Chairman of Aptma, Anwar Tata told a press conference at Aptma Zonal office that the spinners were apprehending fixation of quota, imposition of duty or banning the exports altogether under pressure of the value-added sector.
The sources confided to Business Recorder that the Aptma leadership was seriously reviewing its old documents concerning with the imposition of export quota back in 1994. There is a possibility that the government would go with the decision of imposing quota restriction on the spinners to appease the value-added exporters, crying terribly over the unbridled exports of cotton yarn from the country.
Aptma Chairman told the press conference that the textile ministry has though extended no deadline on this front but the textile minister has extended a clear-cut message in last Wednesday's meeting that the Aptma should come up with a workable solution to the problem. The value-added exporters are not happy with the free exports of cotton yarn from the country, which according to them, has increased by 34 percent in last one month.
Meanwhile, one former Chairman of Pakistan Hosiery Manufacturers Association (PHMA) Shehzad Azam has also criticised the Aptma leadership for applying delaying tactics to defer an immediate decision of the textile ministry on curbing the exports of cotton yarn.
It is worth noting here that the demand for cotton and cotton yarn has witnessed sudden increase among the competing countries of Pakistan, including China and India. Resultantly, the spinners have started dispatching heavy consignments of cotton yarn, inviting a severe wrath of the value-added sector.
Chairman Aptma said no one can impose any bar on exports of cotton yarn under the free market economy and any such step would end up on detrimental impact on the textile industry.
However, when asked present upward spree in cotton and cotton yarn prices would bring the spinning industry out of crisis like situation, looming over since 2007, Aptma Chairman said the industry should come out of crisis though it is premature to draw and conclusion like this.
However, he said the 2007 crisis had resulted into a huge default of Rs 140 billion in the textile industry, as the banks are charging heavily against loans amidst non-availability of electricity and gas to the industry. He said Pakistan was producing exports surplus in the area of textile, which has also absorbed 37 percent of the labour force in the country.