LAHORE, July 19: The central managing committee of the All Pakistan Textile Mills Association (Aptma) will meet here on Tuesday to draw a strategy to fight the crisis confronting the industry as a result of the falling international cotton prices and drastic reduction in duty drawback on polyester-based products.

Aptma chairman Waqar Monnoo told Dawn on Monday that textile and yarn exports from Pakistan had become "economically unviable" during the current quarter (July-September) because of declining cotton rates. He said cotton had cost the mills Rs3200 per maund on an average last year. Currently, he said, cotton was available at Rs2400-2600 per maund.

"So, the buyers are demanding a substantial reduction in the prices of our products from yarn to made-ups in view of the falling cotton rates. This makes exports unviable," said Mr Monnoo.

He said yarn prices had fallen in the world markets to around Rs470 per 10lb from Rs610. He said each (spinning) mill would be suffering a net loss of about Rs60 million in the three months between July and September on account of reduced prices.

"This is going to be quite a substantial loss and may force some to shut down," another miller said. "Same is the case with the exporters of fabric and textile made-ups. Cotton prices last year went up sharply and we did not get the right price for our products and this year the rates has dipped and we are forced to once again suffer huge losses," he added.

Mr Monnoo said the crisis in the textile industry had deepened owing to the government's decision to slash duty drawback rates on the export of polyester-based products. The government has slashed duty drawback on 100 per cent polyester-based products to Rs4.62/lb from Rs9.87. Mr Monnoo said the industry was getting 33 per cent of what it should have been getting on the export of polyester-based products.