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APCPA demands 10 pc duty on cotton export

RECORDER REPORT

FAISALABAD: Yarn price hike, speculation and shortage of various counts have generated new crises in powerloom sector, while an addition of general sales tax (GST) in electricity bill has added fuel to the fire.

This was stated by All Pakistan Cotton Powerlooms Association (APCPA), chairman Rana Ikhlaq Ahmad here on Wednesday while talking to newsmen at the APCPA office.

He said that the prices of yarn have registered a fresh increase of Rs 5 per bundle while approximately total yarn price hike is Rs 50 per bundle within a month. Spinners and speculators have also created great upset in Faisalabad yarn market through disappearance of 38 single count yarn.

He said that yarn is the basic need of powerloom industry, which is not only a labour-intensive but also an export-oriented sector. Powerloom industry, which is a big agro-based domestic sector, is facing a new shock of 15 percent GST being charged from Juanuary 1, 2000, while powerloom owners are already paying 18 percent GST at source. The industry is also subjected to double taxation as well as double electricity tariff, he added.

Rana Ikhlaq warned that if the government did not take immediate action to remove new hardships, the production of cloth will be badly affected, while the export graph of textile goods will decline.

He demanded of the government to impose 10 percent export duty on export of yarn for the protection of powerloom industry.

He alleged that spinners are misusing the export refinance facility and piling-up their yarn stocks for yielding maximum profit and creating shortage of various counts of yarn.

He said that powerlooms sector, hosiery and other yarn consuming industries have capacity for utilisation of 78 percent yarn of its total production Presently 68 poercent yarn is being utilised by local ancillary industry due to crisis and prolonged sickness of economy, he added.

He said that during the first six months of 1999-2000. The export of cotton yarn registered an increase of 15 percent as compared with same period of 1998-99, while large quantity of yarn have been stocked for speculation purpose.

He appreciated the steps of Chief Executive, General Pervez Musharraf to eliminate the social evils and said it is imperative to provide a strong base to small scale labour intensive and export oriented industry for protection of human resources in the best interest of the country.