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PHMA demands complete ban on yarn export

RECORDER REPORT

KARACHI: Mohammed Shafi, the acting chairman of the Pakistan Hosiery Manufacturers Association (PHMA), has demanded complete ban on cotton yarn export.

Addressing a joint press conference with Ready-made Garments Manufacturers Association and Bedwear Exporters Association on Saturday, he urged the Chief Executive, General Prevez Musharraf, to give them time to explain their point of view on this issue.

He said the meeting was essential to save the local value-added industry from total collapse.

He proposed that if a total ban was not possible then an export duty Ñ at least 10 percent Ñ be imposed on the export of cotton yarn.

He said this export duty should be passed on to the growers who have suffered at the hands of ginners and spinners.

He demanded that the refinance facility given on exports of yarn of 30 and above counts should be withdrawn as this was being misused.

He alleged that inspite of good quality of cotton from this year's crop, the spinners had mixed lower grade cotton, and in some cases polypropylene, with the result that the finished fabrics could not be dyed properly and uniformly causing hurdles in export of value-added products.

He said that the exporters would not be able to fulfil their commitments because an approximate increase of 20 to 25 percent in yarn prices, which could not be absorbed in any kind of business, especially when the minimum yarn component was 70 percent.

The acting chief of PHMA said that the exporters, who had an opportunity to boost exports expecting competitive yarn prices that were prevalent in early part of the year, had totally lost the market to our international competitors.

He feared due to this problem not only the old and new foreign buyers would be lost but Pakistan would lose this export market to its international competitor.