20000127

PBEA resents yarn's

artificial shortage,

price hike

RECORDER REPORT

KARACHI: The supply of yarn has been deliberately cut drastically by the spinners which has increased the prices by 20 percent in the local market, said Shabir Ahmed, Chairman, Pakistan Bedwear Exporters Association, on Wednesday.

He was highly critical about the recent "artificial" shortage of yarn, and price-hike and termed it a conspiracy against the national economy.

"We have signed a number of agreements in the recently held textile Exhibition, Hiemtextil Fair, in Frankfurt, for export of value-added items to Europe", said Shabir.

He expressed concern that the efforts of exporters and the minister of commerce, who remained in the exhibition to develop strategy for increasing exports, would fail if prices of their products went high due to increase in yarn prices.

"This costly yarn has been made of extremely cheap cotton which was available in the month of December, 1999. We have made contracts with the European importers on the assumption that yarn prices would remain stable but the lust of bumper profit of the spinners has threatened our exports," said Shabir.

"The high prices of yarn have jeopardised the combined efforts of exporters and the ministries of commerce and finance. This will increase the cost of production and make our value-added exports uncompetitive in international market," he said.

He said that major buyers are European countries and since their exchange rate with dollars has declined, (already affecting Pak exports), "an increase of 15 to 20 percent in our cost will further adversely affect our exports," he added.

He was of the view that the government must intervene and control the situation, as the spinners have already gone against the national interest.

He once again demanded to withdraw the facility of export refinance on all counts of yarn immediately.