Industry divided over cabinet’s decision to continue ban on Indian imports
Business
April 2, 2021
KARACHI: Businessmen and traders have shown mixed response to the cabinet’s rejection to the government proposal of cotton and sugar imports from India.
Pakistan Yarn Merchants Association rejected the cabinet decision for not importing cotton from India.
The association representatives Hanif Lakhany and Farhan Ashrafi said the Economic Coordination Committee (ECC) of the cabinet allowed the import while the cabinet rejected it, which is not understandable.
The government should play serious role in economic issues, they said. The government should take efforts to provide raw material to the industry. If raw material is not available to the industry on economical rates, meeting the export orders would become difficult, they added.
DUE to large-scale Covid shutdown, Pakistan received many orders and the textile sector is booming. But the price of cotton has suddenly started increasing.
The Pakistan Yarn Merchants Association requested the prime minister to lift restrictions on yarn import from India. In anticipation of the approval, the price of cotton in the market had suddenly dropped by Rs10,000 per bag.
Almost immediately, certain stakeholders publicly urged the government to stop yarn import from India, claiming that the industry had bought local cotton at high prices and could not sustain the resultant losses.
The demand meant in practical terms that these people had been hoarding cotton to create a temporary shortage in the market for their own vested interests. With imported cotton available at lower prices, they feared that they would lose their investments in hoarding.
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Exporters fear losing orders due to cotton crisis
Textile body says unavailability of yarn, fluctuations in exchange rate affecting sector
Due to shortage of cotton and yarn, the users were compelled to import the commodities from the United States, Brazil and Uzbekistan. PHOTO: FILE
KARACHI:
The textile sector has voiced fear of losing export orders due to unavailability of cotton yarn and fluctuations in the rupee-dollar parity.
In a statement on Monday, Pakistan Apparel Forum Chairman Jawed Bilwani said that unavailability of cotton yarn and abrupt decrease in the value of rupee against the US dollar can collapse efforts made by the value-added garment and home textile segments.
PM Imran Khan okays cross-border yarn import
By
Prime Minister Imran Khan approves cross-border import of cotton yarn.
PM Khan expresses his concern about shortage and escalation of cotton yarn prices in country.
Media reports say government is considering import of cotton from India to meet demand.
ISLAMABAD: Amid fears of a shortage of industrial input in textile exports, Prime Minister Imran Khan has approved the cross-border import of cotton yarn,
Commerce Adviser Razak Dawood wrote on Twitter that PM Khan expressed his concern about the shortage and escalation of cotton yarn prices in the country during a meeting.
Dawood said the premier gave instructions to take necessary measures, including cross-border trade of cotton yarn, to keep the momentum of value-added exports.