APTMA chief demands 15 percent RD on import of fine count cotton yarn

Chairman APTMA S M Tanveer has demanded imposition of 15 percent regulatory duty on entry of subsidised fine count cotton yarn, predominantly from India. However, Chairman APTMA has made clear that the import under DTRE or manufacturing bond should be exempted from regulatory duty, as APTMA believes in free market mechanism and the regulatory duty should be exclusively meant for domestic industry on domestic use of fine count cotton yarn.
He was addressing a meeting of the manufacturers of fine counts cotton yarn through video link from Karachi and Peshawar at APTMA Punjab office. The manufacturers expressed deep concerns over heavy influx of highly subsidised fine count cotton yarn from India with more than 25 percent subsidisation, affecting the viability of as many as 30 local mills, exclusive producers of fine count cotton yarn. Besides, adverse implication was looming around on the whole in the yarn market, he added.
He said Indian textile industry experts had analysed the impact of subsidy on production of fine counts cotton yarn in the State of Gujrat and stared that the Indian manufacturer got Indian Rs 26.72 per kilogram on subsidy in the form of interest rate subsidy, electricity subsidy, VAT benefit, duty exemption on electricity bill, CST on yarn, transportation of cotton and yarn and power cost besides the central subsidies. The total value comes to around Indian Rs 120 million per annum on a mill of 25,000 spindles, the study has revealed further. Chairman APTMA further said it was alarming to note that annual import of fine count cotton yarn from India has reached to 30,000 tones in 2014 against 6,500 tones in 2012. The import data of first six months of current fiscal suggests that 3,000 tones per month fine count cotton yarn from India was entering Pakistan, he added.
He said 90 percent of imports were originated from India, which was extending unstructured rebate to its manufacturers. According to him, India is capturing Pakistan's domestic market by design, as the end product of fine counts cotton yarn is meant for domestic consumption. Pakistan-based 30 mills have a production capacity of 6,000 tones per month while India is dumping subsidised 3,000 tones fine count cotton yarn on an average per month. India might start sending processed fabric in the long run in case no immediate action was taken against the entry of combed fine count cotton yarn from India, he added. He has urged the Ministry of Textile Industry to spearhead and protect the textile industry on long-term basis.