Exporters face yarn shortage amid int’l orders

Salim Ahmed

Lahore—Pakistan Readymade Garments Manufacturers & Exporters Association (Prgmea) chief coordinator Ijaz Khokhar said that the apparel industry in Pakistan has been facing severe shortage of cotton yarn at a time when international buyers are planning to place orders for Christmas.
Prgmea chief coordinator stated that the local garment industry is not capable of entertaining the international buyers generally due to price factor and especially owing to artificial shortage of cotton yarn created by the spinning as well as ginning industry, which are holding stock in the hope of further hike in rates.
Over burdened by more than 11% multiple taxes and utility cost, the apparel industry demands at least 15% special support to stay in international export market otherwise all current business will be shifted to other countries, he cautioned. “We request Prime Minister’s directive to concerned Ministries to focus especially highly value-added sector and prepare a solid strategy to get the industry sustained.
He said that apparel export sector is under severe pressure due to hard competition in the international market from the countries like Bangladesh, Vietnam and Cambodia. He added that squeezing the apparel export sector will lead to decline in export earnings coupled with unemployment in the country.
“The current cotton scenario is pushing garment manufactures to downward because of non-availability of cotton yarn in domestic market, as mills are reluctant to quote us despite the fact that we are ready to purchase yarn at prevailing high market prices. Spinning mills have been holding stocks on the prediction that prices will go further up amidst high additional regulatory duty on import of cotton yarn.”
Ijaz Khokhar said that garment exporters are getting nervous to make the shipment well in time due to artificial scarcity of raw material, forcing our buyers to go to our competitor countries, offering lower rates, leading to the collapse of our industry.
He said that the value-added textile exporters, who had constantly been participating in world fairs like in Germany and Turkey, and bagging a considerable amount of orders but their exports can take a hit if local yarn prices remain high.
“The spinning sector has always advocated for a free market mechanism, but where is the free market now?” he asked.
Industry demands immediate removal of regulatory duty, custom duty and other taxes on import of yarn form all countries. There is no harm to import raw material from anywhere because our cotton yield is also 30% less than the last year with lower prediction for current year. So, strong interaction is need to be developed between the government and stakeholders for rectifying the textile policy 2014-19
“The apparel industry is in fact the producer of finished textile products that need protection, as it contributes more than 80% to the total textile exports and employs up to 38% of the total workforce of the country. The textile export of Bangladesh is touching $26 billion without growing a single cotton bale and completely depending on the imported yarn, he added.

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