Prices of yarn highly competitive in Pakistan

LAHORE - The government want to put spinning and value added sector into balance. But it is not possible, as spinning sector, evolved through decades, is now successfully competing the post WTO free market scenario, where as value added sector is quite immature. This was learnt during a survey conducted by The Nation on Friday. Secretary APTMA Punjab zone terming the government quota fixing irrational and disastrous for the industry said that despite the fact the World Trade Organisation (WTO) gave 10 years to Pakistan to develop industry to enable it meet the upcoming challenges of free market access, still much is needed to do to improve the situation. Commenting the cotton yarn dispute between the Value Added and the Spinning sectors Chairman of Pakistan Apparel forum Jawed Bilwani said that few industrial giants taking stock of the situation have increased their capacity of yarn production but without focusing on value added aspect of their products (VAP). Bilwani stated the spinning sector is unfairly hiking the price of the yarn. Yarn export will ultimately support the competitors, which would have adverse consequences for the exports of Pakistans value added textile products, he added. According to Pakistan Apparel forum, this increase rendered many units in the value added sectors of knits and garments non-viable. The orders were there but the quality yarn required to produce the high quality garments and knits had hit the ceiling in terms of price, Bilwani said. He added the value added sector comprises of SMEs who are under tremendous pressure from their customers while competing with their counterparts from China, India and Bangladesh. He was of the view that some problems are the results of WTO but for major problems we are ourselves responsible. Its a shame for us that we are among the largest cotton producing countries but unable to utilize our resources optimally, he pointed out. During the survey, experts told The Nation that the textile ministry came to the rescue of the value added sectors and for the first time it announced drastic remedial measures. On the other hand the All Pakistan Textile Mills Association representing the spinning sector said that facts show that the global demand of yarn increased significantly during this period raising the international price of yarn many times. After a low period of 3-4 years the spinning industry suddenly found itself viable and the exports of yarn witnessed several fold increase. Subsequently the price of yarn also witnessed more than 70pc increase. According to sources, prices of yarn in Pakistan are highly competitive; price of 30s carded yarn is $2.78 per kilogram where as price of the same quantity in India is $3.01 and in china it costs $2.95for 30s and $3.15 for 32s carded yarn.