Excessive export of cotton, yarn causing negative impact

FAISALABAD  (October 28, 2010) : The excessive export of Cotton and Yarn, despite the shortfall of cotton 2.5 million bales in the country and advance export bargains of raw material of Value Added Textile Industry is yielding negative impact over the industrialisation and investment in the country, while unemployment is creating lawlessness.

Talking to newsmen, Chaudhry Salamat Ali, Chairman, Pakistan Hosiery Manufacturers & Exporters Association (PHMA) North Zone said that the increasing rate of cotton and yarn as well as its hoarding and speculation are badly affecting the labour intensive and export oriented Value Added Textile Industry, due to which the prices of polyester and cotton yarn are sky-rocketing.

He strongly demanded to the government that the export of cotton and yarn should be restricted till meeting the demands of the domestic sector and should be eliminated the monopolists and capital Mafia, who are adding fuel to the fire by their speculative activities ignoring the national interests.

Salamat Ali, Chairman, (PHMA) North Zone mentioned that the Spot rates cotton have reached at the all time record level of Rs 8300 in the country due to advance export dealing, while working paper of Federal Committee on Agriculture forecasting that the shortfall would jumped up to 2.5 million bales due the recent floods. Uptill now, he pointed out that during the first quarter of the current fiscal year, 3490 metric tons cotton exported ignoring the increasing demands of the textile sector, as well as shortfall of the cotton crop, he added.

Chaudhry Salamat mentioned, the statistics of the Federal Bureau revealed that more than 121,463 MT cotton yarn was exported during the first quarter, other than cotton yarn exports registered an increase of 18.66 percent in term of rupees during the first quarter. These facts and figures are showing dangerous sentiments for future of labour intensive and export oriented Value Added Textile Sector.

Expressing concern over increasing cotton prices in the country, Salamat pointed out that Value Added Textile Industry, is already facing severe crisis due to gas & electricity load shedding, high cost of borrowing from Banks and too much high cost of necessarily raw material, which is building up the doing business.

Salamat demanded that the export of cotton and yarn should be restricted to control the non-stop prices of raw material and export should be allowed after meeting the domestic demands.

He also emphasised the need for improving the Quality and Quantity (Weight) of yarn and demanded that speculators and hoarders should be eliminated from cotton and yarn markets.