The textile industry has suffered a loss of Rs 960 million so far due to delay in clearance of shipments stuck up in Russia. Reliable sources told Business Recorder here on Saturday that 200 containers, carrying textile consignments from Pakistan, were stranded in Russia, European Union (EU) countries and America. Each container is carrying textile goods worth 0.3 million dollars.
The containers that were stranded in the EU countries and America due to the refusal of companies to offload the Pakistani textile products due to economic recession have been released, but the textile exporters are paying demurrage due to delay in clearance of shipments that are stuck up in Russia. "Uptill now, we have paid Rs 960 million as demurrage to Russia," an exporter, requesting anonymity, told this scribe.
He said: "But we are hopeful that our containers stranded in Russia would be released soon because the Russian roubles value appreciated by 20 percent. Earlier Russian rubble depreciated by 40 percent against Dollar," he said. "We have tried our level best to get the support from the government, but no attention has been paid to our request," the textile exporter said.
The export of textile products has already dipped by 5.60 per cent to 6.470 billion dollars as against 6.853 billion dollars during the same period last year. Except for raw cotton, cotton comb and tents, canvas and tarpaulin, the exports of all other textile products declined during July-February 2008-09.
He said the government had set export target of textile products for 2008-09 at 11 billion dollars - 923 million dollars per month - which was impossible as the textile industry was suffering from high cost of production due to rapid increase in gas and electricity tariff.
Last month, gas supply to the industrial areas decreased by 50 percent, the exporter said, adding that the textile sector needed continuous supply of gas to run the captive power plants as well as boilers. He said the shortage of gas and electricity had discouraged the foreign investors, while most of the local textile industrialists were shifting their businesses to Bangladesh and India.
The exports of textile products during February went down by 13.42 per cent with raw cotton dipping 26.82 per cent to 5.802 billion dollars as against 7.928 billion dollars for January, cotton yarn by 0.81 to 78.151 million dollars from 77.524 million dollars, cotton cloth by 6.32 percent to 116.226 million dollars from 124.068 million dollars and cotton carded or combed by 50 per cent to 76 million dollars from 152 million dollars. When this scribe contacted the Ministry of Textile, the officials, showing total ignorance, said: "The government is unaware of the matter."