The Pakistan Textile Exporters Association (PTEA) has lamented that textile exporters are in a quandary over sudden hikes in cotton yarn, polyester yarn, gas and electricity and petroleum prices which have over burdened manufacturing and cost of production rendering the textile exports in competitive in international markets.
In a communication to the Prime Minister and Commerce Minister, Tahir Ishaque Bharara, Chairman of PTEA, has drawn their attention towards the rising costs of all components of manufacturing/production. The prices of cotton yarn of 10/s have gone up from Rs 400 per bundle to Rs 420 per bundle and of 20/s from Rs 650 to Rs: 680 and 24/s from Rs 710 to Rs 750 over the last one week.
Similarly, the polyester yarns prices per pound have gone up by 5 to 10 percent. he said. In addition to raw material the prices of gas and electricity have also been upped by 10 percent whereas the petroleum hike of another 10 percent has further burdened the industrial costs, he stated.
The cumulative effect of these hikes has raised the cost of production of Pakistan's textiles by 10 percent and the exporters have been placed in a difficult position vis-à-vis their rivals India, China, Bangladesh to compete in international markets.
He pointed out that prices of cotton have also increased in domestic market from Rs 3400 to Rs 3640 per bale. Furthermore, the import of cotton from India is facing hindrance. The PTEA chairman urged the concerned authorities to take immediate cognisance of the matter and save the textile industry from the crisis.