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Concern at price hike, shortage of high quality yarn

RECORDER REPORT

FAISALABAD: All Pakistan Cotton Powerlooms Association (APCPA) has expressed concern over the shortage of high quality yarn and gradual rise in its prices, demanding export duty and withdrawal of refinance facility on its exports.

In a statement issued here on Wednesday APCPA chairman Rana Ikhlaq Ahmed said that the prices of yarn are increasing and yarn dealers are exploiting this situation by creating its shortage in the domestic market.

The speculation in yarn market has further aggravated this situation hitting hard the powerloom owners, he said.

Rana Ikhlaq Ahmed said that the refinance facility is being used relentlessly for the hoarding of yarn to earn more profit by creating its shortage.

He further said that 15 percent more yarn has been exported during the first six months of the current financial year as compared to the same period of previous year.

This step has been taken by ignoring the domestic needs of the high quality yarn, he said and added that powerloom owners are facing problems in the manufacturing of export quality cloth.

Ikhlaq said that 80 percent of yarn be allocated for the domestic industry and only 20 percent is allowed to be exported in order to encourage value addition in textile sector.

He also demanded to launch a crusade against speculation and said that special powers be given to police to hit hard the speculators.

He also demanded levy of export duty besides withdrawal of refinance facility for the export of yarn.