Changes sought in SRO on yarn export ceiling

Leaders of 13 value-added textile associations complained that the industry is presently on the verge of closure due to cotton yarn shortage in domestic market which could lead to large scale unemployment. - File photo
 
KARACHI: Leaders of value-added textile sector while criticising government's indifferent attitude towards issues confronting the industry demanded immediate amendment in the ministry of commerce SRO 26(i)/2010 of Jan 14.

Instead of capping cotton yarn exports at a lower level the SRO issued by MoC has allowed exports higher by 40 per cent over the previous year. exports.

The demand was made by leaders of 13 value-added textile associations at a press briefing held at the PHMA House on Wednesday. With globally short cotton crop the availability of yarn has also declined resulting in high demand by big players like China, they added.

The leaders, who are annoyed with the government approach and its decision-making process on such sensitive issues, where survival of the value-added sector is at stake, looked perturbed and helpless.

They pointed out that the value-added textile sector is the largest revenue and foreign exchange earner and provides jobs to the largest number of skilled and unskilled workforce.

But unfortunately, even after holding successive meetings with the government during last four months no worth mentioning protection was given to the industry, which is presently on the verge of closure due to cotton yarn shortage in domestic market, these leaders complained.

They pointed out that due to wrong government decisions the industry is presently canceling large number of export orders as they could not meet foreign commitments when cotton yarn is not available.

"I must say the industry ultimately may close down but the government should bear in mind that it will open up floodgates of unemployed youth in the country, which is already confronted with law and order situation," warned M Jawed Bilwani, spokesman for the value-added textile associations.

He further said that unbridled exports of yarn were damaging the value- added textile exports and the government does not seem to understand and grasp plain and simple mathematics.

Instead of reducing and containing yarn exports the ministry, on the basis of sheer manipulation of figures by vested interest, has increased its ceiling, which stands around 40 per cent over last year's exports.

Distributing export figures of yarn to the media on the occasion, Mr Bilwani revealed how the people with vested interest managed to prevail upon decision-makers at the cost of national interest.

He pointed out that during first six months (July-Dec) of current fiscal export of all category of yarn stood at 375.4 million kg or 47 per cent higher over the same period of last year (2008-09).

Similarly, he said yarn export other than cotton stood at 7.7 million kg or 48 per cent higher over 5.2 million kg recorded during first six months (July-Dec) last fiscal.