Curb on yarn exports: value-added sector accuses spinners of pressurising ministry

Frustrated value-added sector has started playing below the belt by alleging the spinners of greasing the palms of the Ministry of Textile to avoid early implementation of quota restriction on exports of cotton yarn. Requesting anonymity, well-placed sources in the knitwear sector told Business Recorder on Saturday that the APTMA leadership was influencing the Ministry of Textile by all possible means to avoid early restriction on exports of cotton yarn.
He claimed the All Pakistan Textile Mills Association (APTMA) had also managed to ensure continuous supply of gas to the captive power units at the cost of the rest of the industry, including the value-added sector, despite the fact that both the Sui Northern Gas Pipeline Limited (SNGPL) and the Sui Southern Gas Company (SSGC) could deny them gas supply for three months a year as per the connection agreement.
They said the spinners were making a huge profit of Rs 3,200 per bag of yarn because of the short supply to the local market. According to them, the APTMA was supplying yarn to the Pakistan''s competitors in the field of knitwear and garments in alleged connivance with the government policy-makers.
It may be noted that during a press conference, addressed by its Central Chairman, a question was also posed by the reporters to him on the alleged influence to the ministry, which went unnoticed. However, he denied any influence or pressure being built up by the spinners. The row between the APTMA and value-added manufacturers and exporters is intensifying with every passing day.
A recent meeting in Islamabad with both the sides on board had witnessed strong exchange of arguments from either side. There was a general impression that the Ministry of Textile is going to take final decision on the quota restriction against yarn exports. However, the APTMA leadership warned a countrywide strike while fearing an immediate closure of 400 spinning mills with restriction on yarn exports. Interestingly, the value-added manufacturers also fear similar outcome of the delay in imposition of quota restriction.
A mob protest in Faisalabad has witnessed hooliganism from the power looms workers, who tried to loot the cellular and confectionery shops during the protest. Some independent circles believe that the situation is heading towards a fight between the have and the have-nots, leading to a "survival of the fittest" like scenario.