July 21, 2007	Saturday	Rajab 05, 1428

KARACHI, July 20: The value-added textile sector has asked the government to take measures to check the rapidly rising prices of yarn and auxiliaries, which would badly damage exports particularly when the sector is already faced with high utility costs.

It has been further pointed out by leading textile trade bodies that the cotton yarn, being basic raw material of textile sector and its price was directly linked with raw cotton, it was imperative that a price check be enforced starting from the cotton and onward.

The five leading apparel and home textile associations warned if the rising trend in prices of raw materials and other inputs was not checked exporters would lose their share in the world market against their competitors from India, China, Bangladesh and Sri Lanka.

Exporters of textile goods are already under pressure following Indian government’s export package and fear to lose heavily against their Indian counterparts, who have been given lucrative support package recently to make them more competitive and capture more markets.

They blamed the wrong government policies, which triggered yarn prices owing to rise in raw cotton prices in the domestic market. The value added apparel and home textile sectors are seeking control over export of raw cotton in order to keep the products viable and competitive in the world market.

Towel Manufacturers’ Association Chairman Muzzammil Husain said that how could any industry could stay competitive if it had to face a sudden surge in prices. He said cotton yarn prices during last three months (April-July) increased between 10 to 15 per cent.

In the absence of any regulation from the government to control the prices of auxiliaries such as soda ash and caustic soda flake during last three months also increased sharply in the range of 5 to 10 per cent.

The leader of these trade bodies – TMA, PHMA, PBEA, Prgmea and Paksea — are of strong view that sudden rise in prices of inputs could not be absorbed by the export-oriented industry which had to compete in the world market.

They demanded of the government to discharge its duty by adopting such measures, which could help control prices of all sorts of raw materials and inputs needed by export-oriented industry to help it stay competitive in the world market.