Textile and commerce ministries have failed to resolve cotton yarn export dispute between value-added textile sector and spinners, as both the parties have now taken the case to court.
Sources told Business Recorder on Thursday six-month long dispute of cotton yarn export has finally reached court as Pakistan Hosiery Manufacturers Association of Pakistan (PHMA) has filed a petition in Sindh High Court for complete implementation of quota notification issued in February, while some spinners/exporters of cotton yarn have also approached Lahore High Court against the ceiling of yarn export by the ministry of commerce.
They said despite a free trade mechanism in the country, on the demand of value added textile sector the ministry of commerce following the advice of the ministry of textile industry, restricted the cotton yarn export at 50,000 tons per month on January 14, 2010.
However, at that time the ministry allowed quota-free export of five value added yarn products including lycra, dyed, heather grey or melange, slub and bleached or singed.
As a result, overall export of cotton yarn including value added mounted to 55,000 tons by the end of January 2010, after which once again the value added sector is asking the textile industry and commerce ministry for a complete ban on the cotton yarn export.
Second time on the request of value added textile, the ministry of commerce on February 25, 2010 ordered that export of yarn will be restricted to 35,000 tons per month for all types of yarn for the next four months from March 1, 2010 to June 30, 2010 and now yarn will have a price of 3.5 dollars per kg that would be excluded from the quota restriction.
Protesting the decision, All Pakistan Textile Mills Association (Aptma) which has already announced disassociation with the ministry of textile, announced to observe strike from March 18, 2010. Meantime, several Aptma members approached Lahore High Court praying the court to remove quota curbs on cotton yarn on which the court issued notices to the respondents including Aptma, ministry of commerce and textile for today (Friday).
While on a constitutional petition filed by PHMA, Sindh High Court on Tuesday ordered the Ministry of Commerce, the Ministry of Textile, the FBR, Customs and Aptma not to violate the yarn exporting limit of 35 million kgs per month. Sources said although the commerce and textile ministry made several efforts to resolve the issue, however, they failed to secure a consensus on the issue and now the ceiling on the export of cotton yarn has emerged a basic dispute between value added sector and spinners.
Aptma says negative attitude of the ministry of textile industry would badly hurt the spinning sector, which is in its revival stage after three years of extensive shocks. "The ministry took unilateral decision to reduce the quantitative restriction on export of cotton yarn without taking Aptma into confidence, which has forced the spinners and yarn exporters to move court.
Aptma also feels the government interference is destroying the free market mechanism and would directly hit the downstream sector in times to come. On the other hand, representatives of value added textile sector have claimed that mismanagement of the Trade Development Authority of Pakistan and ministries has compelled them to file a petition for a 100 percent implementation of quota ceiling, which earlier was not followed.
Comments
Comments are closed.