ISLAMABAD: The Sui Northern Gas Pipelines Limited (SNGPL) has decided to partially suspend gas supply to the textile sector in the next few weeks due to gas shortage.

The decision has been reached in consultation with all stakeholders, said a senior official of the gas company while briefing the National Assembly standing committee on textile industries here on Monday.

As per an agreement reached with the textile sector with the SNGPL, the utility company will not supply gas to the textile sector for four months in a calendar year, said the gas company official.

But the minister for textile industry Abbas Khan Afridi informed the committee that the government, with the consultation of textile and petroleum ministries, had decided that the supply would continue on a regular basis.

He, however, agreed that the current suspension is due to problems in the pipeline. The minister said the supply will resume shortly.

Mr Afridi said that textile plays an important role and witnessed more than nine per cent growth in November.

The textile industry informed the committee that the textile exporters have not submitted their claims with necessary documents as per the time fixed by the Sindh High Court. It was further informed that the research and development claims have already become time barred.

The Agriculture Policy Institute (API) analyses the relevant factors in determination of intervention price of cotton.

The meeting was informed that the API, after considering all factors, recommended the intervention price of Saeed Cotton for 2014-15 crops as around Rs3000 per 40 kg. The case was referred to Economic Coordination Committee (ECC) of the federal cabinet in its meeting held on Oct 2.

But the committee showed its concern over the decision of the ECC and recommended that in future the ministry of textile industry and other stakeholders should complete their homework well in time for fixation of intervention price of cotton before the sowing season of cotton in order to benefit the farmers.

Published in Dawn December 23th , 2014