Surging yarn prices hit value added sector in Pakistan- APBUMA

MULTAN, Dec 22nd: Syed Muhammad Aasim Shah, Chairman All Pakistan Bedsheets & Upholstery Manufacturers Association (APBUMA) has urged government to take notice of a 25 per cent surge in yarn prices `due to cartelisation of local manufacturers and said that surging yarn prices is hampering value added textile sector. He said that costing of doing business has increased many folds owing to un-checked prices. He was of the view that the competitiveness of our textile sector is vulnerable in the current scenario and will lose business to our competitors due to much lesser international prices of the yarn. In statement issued here today  APBUMA Chairman said that the skyrocketing yarn prices have hit the value added sector very badly and most of them have now decided to cut their production.He said the prices of all varieties including 10-count single yarn, 16-count 30 yarn and 16-count 20 yarn had increased by thesame ratio.
The Chairman APBUMA said that Government already provided the incentive to yarn manufacturers in the form of DLTL on export yarn up to 4% and in addition to this Government has also withdrawn Sales Tax and customs duty on import of cotton but unfortunately benefit of this is not available to local textile sector. He stressed the need for level playing ground for value added textile industry as well by lifting restrictions on yarn import as rates in international market are mess less than the local market.Syed Aasim shah said due highest yarn prices it is becoming really hard to plan for future export contracts while exporters are about to participate in Heimtextil Fair Germany in January 2018. He said that though Government has provided incentive to Value Added Sector as well in the form of DLTL notification 2017-18 but increased production cost has made it zero sum game for the sector thus no real support.
He requested the Government to immediately lift ban on import of yarn to ease the burden of high cost and offer competitive prices in international market to accelerate export and support the economy.He also suggested the government should ban exports of raw cotton and cotton yarn for a short period until the disposal of current crop and prices rationalise on the domestic market.