October 16, 2003	Thursday	Sha'aban 19, 1424

FAISALABAD, Oct 15: The local yarn market was in the grip of speculators on third consecutive day on Wednesday and the real buyers were still missing from the market in the wake of abnormal increase in the prices of cotton followed by unprecedented jump in the prices of cotton yarn from Rs5 to Rs7 per 10lbs while Rs5 per pound of polyester cotton yarn.

According to market sources, the increase has plunged the powerlooms sector and the export business in deep crisis.

The local yarn dealers claimed that the ratio of the increase in cotton yarn prices and the polyester yarn rates was much higher than the prevalent rates of cotton in the open market.

The 20 single counts cotton yarn of 10lbs was available at Rs632 including sales tax. Similarly, rates of the 30 cotton single counts 10lbs jumped from Rs635 to Rs750 per 10lbs. Likewise, rates of 40 cotton single counts rates of 10lbs went up from Rs675 to Rs750 including sales tax. The rates of polyester cotton yarn moved up by at least Rs5 per pound in all counts.

The small powerloom owners are said to be worst hit due to abnormal increase of the cotton and polyester yarn rates and they are facing serious financial problems to supply grey-cloth as per their commitments.

Tahir Rasheed, an owner of 24 powerlooms, told this correspondent that he had an agreement with a buyer to supply 100,000 meters grey-cloth just a day before the abrupt increase in the rates of cotton yarn. He said he could not fulfil the commitment even after selling his powerlooms. He said that he was under tremendous pressure to supply the grey-cloth as per already settled rates and threatened to be implicated in a criminal case.

The rates of cotton and polyester yarn were still rising, although the conversion rates of shuttle looms have gone down from 18 paisa to 14 paisa per pick.

Commenting on this situation, a leading yarn merchant, Ashraf Gandhi said the government should not bow to the pressure of Aptma seeking ban on the export of cotton and instead should impose complete ban on the export of cotton yarn to save the local industry, value-added export business and powerlooms, which is at the verge of collapse.

He claimed that the Aptma always raises undue alarm aimed at manoeuvring favours from the government through its strong lobby and deep links with the rulers while the actual victims were the small powerlooms owners, medium size exporters and those who were involved in a value-added export trade.

The government should take cognizance of the situation and evolve a comprehensive policy in this regard, he added. The owners of textile ancillary units like bleaching, dyeing, printing, hosiery, garments and the exporters of cloth also expressed their concern over the unprecedented increase of the cotton and polyester adding that they had been pushed to walls due to ill-conceived policies of the planners.

Elaborating, they said that it was obligatory upon the government to take corrective measures and immediate steps for resolving the issue and import pesticides for cotton crop.