Fuente: Daily Times
Dispute between 2 textile sectors continuesBy Tanveer AhmedKARACHI: The two segments of textile sector spinning and valueadded have locked horns over 15 percent regulatory duty on cotton yarn export and are lobbying hard to win the decision in their favour.As the expiry of this regulatory duty is around the corner, the both sides are trying to use their influence for the favourable decision and keep on pleading for it.This was the turn of All Pakistan Textile Mills Association (APTMA), which pleaded on Monday that regulatory duty on cotton yarn export should not be extended once it lapsed on July 26, 2010.Shahzad Ahmad, Chairman APTMA said that non extension in regulatory duty would allow the demand and supply to govern the prices of all raw materials and end products and the market would find its own equilibrium at which all stakeholders would benefit and contribute positively to the economic development of the country.He said that intervention only serves to distort the market and neither of the sectors can derive any benefit from this. Since the mills had stopped importing cotton because of uncertainty, serious shortages had been created and prices had risen enormously thereby affecting the viability of the spinning mills as a result of which many mills had to close down.In addition he said that the export duty on yarn had created serious problems for mills because the surplus yarn could not be exported and stocks with mills were piling up.He said that with the advent of the new crop prices had started to decline to realistic levels and this would help the mills to restart and increase availability of yarn for the down stream sector.However, he said that the regulatory duty must be allowed to lapse on 26 July as per the government´s commitment and a clear announcement to this effect should be made. This will allow the prices to stabilise and the downstream sector could plan its export commitments accordingly.Furthermore, export markets would also be assured that the government was sincere and "we would then try to bring back buyers to Pakistan. As it is already pointed out that Pakistan has been loosing market share to other regional competitors and they had made huge inroads in our market share.On the other hand, valueadded sector has been demanding the government to keep this regulatory duty on cotton yarn export for another two months because the country does not have the opening balance of cotton.According to the sector people, there are no opening stocks of cotton in the country and secondly, the new cotton season will actually start from September 1, when phutti arrivals from fields to ginneries will gain momentum.The current high prices of cotton in the domestic market strongly reflects the serious gap between demand and supply and presently trading is going on in stocks held by individual spinning mills as ginners have already exhausted their stores.

Fuente: Daily Times – Lahore – Pakistán