FAISALABAD, Feb 17: An abrupt increase of Rs10 per kg in polyester fibre prices has jolted the business activities in the local cotton yarn market.

The manufacturers of polyester fibre in a sudden move enhanced the prices of polyester fibre from Rs72 to Rs82 per kg, which not only forced a number of owners of spinning mills to cancel their orders in the local market but scores of commission agents have also stopped their business to avoid losses.

The manufacturers of the polyester fibre were of the view that following the increase in tariff of electricity, prices of petroleum products and imposition of a number of taxes by federal government, they had left with not option but to enhance the prices of polyester fibre.

A source in the textile sector said that textile mills and small textile ancillary units would have to purchase this commodity at higher rates to meet their export consignments in the international market.

Polyester fibre was a yarn produced through chemical and used as raw material in almost all the varieties of fabric products. The increase would also affect powerloom and other units like hosiery, sizing, dyeing and calendaring.

A number of yarn dealers told this correspondent that the increase was aimed at maximum financial benefit as the exporters and owners of textile mills had no option but to purchase the fibre at higher rates. The manufacturers of polyester fibre, with the connivance of government officials concerned, had already got imposed taxes and duties on the import of raw material like polyester fibre, they added.