FAISALABAD, June 29: Over 100 textile ancillary units in the city have reached on the verge of closure due to an acute shortage of caustic soda in the market. Information gleaned by this correspondent here on Wednesday revealed that due to the month-long shortage of caustic soda in the domestic market, the textile exporters, besides the owners of dying, printing, processing, bleaching and chemical units have been facing problems and left with no option but to purchase soda from local manufacturers at a higher price.

Sources say the shortage and the resulting hike in soda price has been caused due to the heavy customs duty imposed on this raw material. They say the government is charging Rs7,000 duty on the import of one ton caustic soda which is worth Rs4,500.

The irony of the situation is that the importers have to bring the commodity in liquid form with only 33 per cent of the caustic soda and 77 per cent water, which means that the importers are paying 156 per cent duty on this commodity, they add.

Pakistan Textile Exporters Association chairman Faiq Jawed and the office-holders of the All Pakistan Textile Processing Mills Association have separately requested the federal minister for textile industry to take measures to redeem the situation.

They apprehended that if early steps were not taken to restore proper supply of caustic soda, the textile processors and exporters might face serious financial crisis.

Federal Textile Minister Mushtaq Ali Cheema claimed the government was making efforts on ‘war-footings’ to overcome the shortage of caustic soda. He said a letter had been sent to the Central Board of Revenue chairman for reducing the customs duty on the import of caustic soda.

The ministry had proposed to bring down the duty to five per cent on import of liquid soda and zero per cent on the import of solid soda, so that the textile-related units could be given some relief, he added.