On the spinners' threat to go on strike, the government may relax the quantitative restrictions on export of yarn, which was fixed and brought down to 35 million kg per month from 50 million kg. Informed sources revealed that the Textile Ministry is likely to convene a meeting of all the stockholders including representatives of All Pakistan Textile Mills Association (Aptma) and value-added sectors to resolve the issue amicably.
Recently the government had decided to further tighten the quantitative restrictions on export of yarn fixing it at 35 million kg per month instead of 50 million kg. A notification was issued to implement the decision from March 1 to June 30, 2010 to protect the local value-added sector as yarn prices were escalating rapidly with each passing day.
In reaction to the government decision spinners threatened on Tuesday to go on strike if it failed to remove quantitative restriction on cotton yarn exports within ten days. This ultimatum was given by Chairman All Pakistan Textile Mills Association (Aptma) at a press briefing after an emergency meeting of the association. The ultimatum given by the Aptma has compelled the Ministry to take some corrective measures to avoid confrontation. When this correspondent tried to contact Textile Minister, his personnel staff informed that he is busy and not available for comments.
Vice Chairman Seight Akbar told Business Recorder that the yarn export will come to a complete halt within a week after consumption of the entire quota fixed at 35,000 tons per month. As a result the spinners would lose LCs worth millions of rupees in hand on refusing firm export contracts.
He further said that they do not want to see the value-added textile sector to collapse, but there should be a judicious decision with regard to yarn exports. Sources maintained that the decision was taken to support the value-added sector, which suffered due to sky rocketing yarn and raw cotton prices in the local market.
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