More than 40 thousands powerlooms have been closed down, while about 30 thousand looms have closed one shift due to acute shortage of yarn and price hike. Talking to newsmen, Rana Ikhlaq Ahmad, Chairman, All Pakistan Cotton Powerlooms Association (APCPA), demanded of the government to stop export of cotton and cotton yarn for saving the value-added textile industries including cloth, hosiery, bed sheet, towel and other yarn consuming ancillaries, which are the main source of livelihood to 1.5 million families.

He cautioned that if the export of yarn is not stopped the value-added industry of the country would suffer, which is earning foreign exchange and providing jobs to millions. Rana Ikhlaq maintained that the severe shortage, hoarding and 35 to 40 percent hike in the prices of cotton and poly cotton yarn are adversely affecting the exports of textile sector, which have already declined by 11.50 percent in the first quarter of current fiscal year.

Meanwhile, Ministry of Textile has invited representatives of 10 textile associations and all other stakeholders in Islamabad on November 18 to review the yarn crisis. Rana Zahid Tayseef, City District Nazim, Faisalabad warned the government that the closure of factories have created panic and unrest among both the industrialists and workers. Talking to newsmen, he said that if the present situation prevailed deterioration in law and order situation could not be ruled out.

Sohail Pasha, Vice Chairman, Pakistan Textile Exporters Association pointed out that cotton and poly cotton yarn were the main raw material for the Textile chain and for the value added industry. Prices of cotton and poly cotton yarn have been manipulated by the unscrupulous traders, he said. Furthermore artificial shortage of cotton and poly cotton yarn has been created by the holders and speculators, he added. Resultantly not only the supply of cotton and poly cotton yarn in the market has decreased but also the prices of various qualities of cotton and poly cotton yarn have jumped enormously, he mentioned.

He said the situation was further complicated by the unjustified hike in the prices of polyester cotton yarn, which is second alternative raw material for the textile industry. As a result of these unethical manoeuvrings, the up stream value-adding industrial chain is confronted with shortage of raw material as well as difficulty in meeting their export commitments with their foreign buyers, he added.

PTEA Vice Chairman demanded of the Government to control the speculations and hoarding of cotton and poly cotton yarn by yarn dealers and total ban on export of cotton and capping the export of poly cotton yarn providing sufficient raw material for domestic industry prior to allowing any export.

Source: Business Recorder