KARACHI, Oct 29: Pakistan Polypropylene Woven Sack Manufacturers Association has written a letter to Prime Minister Shaukat Aziz requesting him to reduce the customs duty from 10 to 5 per cent on import of polypropylene.

Polypropylene is a raw material used in manufacturing of woven sacks for packaging cement, fertilizers, poultry feeds, wheat, rice, sugar and pulses, etc. The association says the increase in international oil prices has pushed up the cost of imported polypropylene granules that are a by-product of petroleum.

It says that the CIF Karachi price of polypropylene granule has risen to $1200 per ton from $600 per ton a couple of months ago. "Consequently, high cost of production has resulted in increased cost of woven sacks, adversely affecting the business of the industry," says the association.

This high cost of production of woven sacks would render the local industry uncompetitive "to cheap import from the countries producing oil/polypropylene granules."

"If this situation is allowed to continue it will result in gradual closure of domestic units (of polypropylene), rendering thousands of workers out of job and the government as well as the industry will have to revert to import of sacks and packaging material at high price."

The association has asked the PM who also holds the portfolio of finance minister to reduce the import duty on polypropylene from 10 to 5 per cent to avoid this situation. It has appreciated the government move to reduce the duty on this item from 20 to 10 per cent in the current budget.