KARACHI - The spinners are pushing the government to lift 15pc regulatory duty imposed on the exports of yarn from July 27 on account of facing heavy losses in their margins and an anticipated rise in the cotton prices at international market, industry sources said. Sources in APTMA said the federal government, instead of intending to impose restraint on the export of raw cotton from the country in a view to offset the probable supply shortfall of this commodity, must make efforts to enable the cotton growers for obtaining the maximum profits of their agri-input. However, a source from Value Added Textile Forum, while talking to this scribe, said the yarn and cotton both are the essential raw materials of the value added industry therefore, in order to provide further respite to this sector, the government should not only maintain its decision of imposing RD on yarn exports, but to put limit on the export of cotton as well. The source further claimed that the yarn spinners have not been registered their full units with the Ministry of Textiles and Industry. They are misguiding the Ministry by giving false details regarding the numbers of registered functional industrial units. According to APTMA sources, there are clear indications that the government, after imposing regulatory duty on the export of cotton yarn, will continue to intervene into the free trade of the raw materials being used in the production of textile goods for the second consecutive time which if materializes, will destroy the growth potential and competitiveness of Pakistans textile industry at domestic level as well as across the international exports markets. It is pertinent to mention here that the government had already put restrictions on the exports of yarns first by way of a quota regime and soon after imposed 15pc punitive regulatory duty on its exports with effective up-to July 26, 2010. A meeting between the both stakeholders of the textile sector, APTMA and the value added sector on a directive of the Federal Ministry for Textiles Industry Rana Farooq Saeed Khan is expected to be held this week. The proposed meeting would evolve a new strategy to be pursued by the government with regard to the trade regulations of such raw materials in the current fiscal year, 2010-11. APTMA sources said in the case of cotton yarn, Pakistan needs to allow the free market to determine new investment in the spinning and downstream sectors. Any move to choke even a single link in the chain will create an imbalance which will cripple the entire chain. Sources suggested that the cotton growers can easily increase the volume of their production from the current size of 12-13m bales to 20m bales by improving the standard of cotton productivity which would ultimately come from introducing better quality seeds and using other related technology advances in the agriculture sector of Pakistan. Pakistan has to invest money in the procurement of the correct seed and allow the farmers to get the correct international prices for their efforts and production sources said. What the decision makers have to realize is that the distortion of trade in the spinning sector has influenced the ability of the spinners to import raw materials which is a regular feature for the last few years, they added.