KARACHI: Cabinet Committee on Textile has decided to further cap export of all yarn-cotton and other than cotton-up to 35 million kgs per month.

The new threshold on export of all yarn is aimed at providing the adequate quantity of all yarn to the value-added sector, which has been claiming for the shortage and high priced yarn in the country, which is putting crippling impact on the downstream textile industries.

Cabinet Committee on Textile took the decision on Thursday, Textile Minister Rana Farooq Ahmed Khan chaired the committee. It is worth noting that Senate Standing Committee on Textile also proposed the government to cut the yarn exports a day ago.

Javed Bilwani, Chairman Pakistan Apparel Forum (PAF) told Daily Times that committee decided that yarn of value above $3.5 per kg, however will be excluded from capping.

He said decision would be implemented with immediate affect and SRO in this regard is expected to be issued in a next few days.

Earlier, the government restricted the cotton yarn export to 50 million kgs per month in January, however, the export figures of the month of January indicated that it was exported more than the limit set by the government, which triggered an outcry in the value-added sector, blaming the spinners to indulge in the foul play.

Spinners, however justified the cotton yarn export beyond the limit on the ground cap was imposed on January 18, 2010 and whatever exported before that date does not violate the decision in any way.

Last day, Senate Standing Committee was informed that yarn prices have increased 13 percent in the month of January due its short supply in the country. Exporters said that export is lucrative because of demand of yarn in the world and particularly in the regional markets.

Exporters said that already a huge quantity of yarn has found its way outside the country and at this juncture, the step would not by so helpful, however, it would do remedy to some extent.

Value-added sector, on the other hand, says that if immediate steps were not taken to ensure the yarn supply to downstream industries, the whole chain of value-added industries would be in hot waters that may result in closure of industries creating unemployment.

We are demanding the ban on yarn export not for our self-interest but for the national interest as the creation of more unemployment would add further fuel to already fragile socio-economic conditions of the country, Javed Bilwani remarked when asked about the rationale for their demand on yarn ban.

dailytimes