FAISALABAD, Feb 7: Textile ancillary industry is knee-deep in crisis following further increase in the prices of cotton and polyester yarn during the last two weeks.

Scores of powerlooms, sizing and dying, calendaring, bleaching, finishing, printing and hosiery units are not in operation following Rs30 to Rs50 increase in the prices of cotton and polyester yarn per bundle.

Similarly, the escalation in prices of other inputs like chemical, furnace oil, electricity, gas, water has also hit the industrial sector. Small industrial units are also not getting orders for manufacturing, finishing, sizing, printing, processing and dying from cotton fabric exporters.

It was also noticed that the exporters and industrialists had been confronted with a number of problems due to speculative business in the market and escalating prices of cotton and polyester yarn and other material. The exporters having a chain of business and commitments with foreign buyers are also seen in trouble due to uncertainty in the cotton yarn market.

There are a few exporters who have resources to purchase yarn and meet the challenges of escalation in prices of all the items to fulfil export consignments. Over 80 per cent exporters, who used to purchase cotton yarn on day to day basis, are the worst sufferers.

A visit to industrial areas of Nisar Colony, Samanabad, Faizabad, Akbarabad, Dogranwan Road, Ali Town, Sargodha Road, Punj Pulian, Muneerabad, Sohailabad and Bauwala revealed that over 200 industrial units are lying idle.

Local cotton yarn market sources revealed that rates of cotton yarn had gone beyond the reach of exporters due to record increase during the one decade as compared to renowned foreign brands of cotton yarn.

A yarn dealer, Muhammad Adrees Nagra, said that actual buyers were absent from the market and the entire transactions were being done by the speculation mafia.

Secretary general, All Pakistan Sizing Industries Association, Shahbaz Ahmed Kissana, castigating the government said that the entire textile industry was confronted with serious crisis in the wake of upward trend in the prices of cotton and polyester yarn and other raw material. Yet the agencies concerned are playing the role of silent spectator. He said the government should call a high-level meeting to evolve the strategy to save the textile ancillary industries from the total collapse.

The office-bearers of top textile associations - the All Pakistan Cotton Powerlooms Association, the All Pakistan Cloth Exporters Association, the Pakistan Hosiery Manufacturers Association - had already expressed their grave concern over the escalation in prices of yarn and other raw materials as well as speculation business in the market. But no steps have so far been taken by the government agencies to support the industries resulting in closure of scores of industrial units and rendering thousands of industrial workers jobless, they added.