KARACHI: The All Pakistan Textile Mills Association (Sindh-Balochistan zone) chairman M Yasin Siddik said on Monday that the actual issue relating to cotton yarn was of high prices and not its availability in the domestic market as being claimed by the value-added textile sector.

Addressing a hurriedly called press conference at the Aptma House he said that there was no shortage of yarn in the local market but its price had surged in the recent past owing to increase in cotton prices.

Giving details Mr Siddik said that about two months back cotton prices were at around Rs3,300 per 40kg but recently they moved higher to Rs3,800 in sympathy with the world rates.

He further said that the cotton prices in the world market had gone up from 60 to 70 cents due to unsuitable weather conditions in the main cotton growing area of Memphis (USA) and also in certain cotton growing areas in China.

For over last ten years the cotton economy of the country is being run on free market mechanism wherein growers have the right to export cotton if they get a better price, he added.

Since the spinners, he said, never objected to the free market mechanism, there is no reason for the value-added sector to make hue and cry if they have suffered some business losses owing to price fluctuations in cotton yarn.

The chairman Aptma said if the value-added sector felt that the yarn prices in the domestic market were high they could easily import yarn as well as fabrics to meet their export commitments.

 He said that the spinners had been importing cotton over the years to meet shortages and even this year around 3 million bales may be imported to fill the gap between demand and supply.

Asif Enam, member managing committee Aptma, said that it should have been appropriate for the ancillary textile industry to go for import of yarn and fabrics from anywhere in the world in case they get a better price.

He further said that even in the past the value-added textile sector imported yarn and fabrics whenever they felt it appropriate, therefore, the same could be done even today.

Another MC member Rafiq Ibrahim said that the spinners were competing in the world market without getting any concessionary refinance or research and development support as being given to the ancillary textile sector.

Responding to a question Mr Siddik said that the Aptma had been demanding of the government to remove anti-dumping duty on import of polyester staple fiber so that its availability at competitive price is ensured.

But unfortunately, he said, for the last three years their demand is being ignored by the government, which is also causing raw material shortage because many spinners would like to go for polyester fiber.

It is not the ancillary industry alone confronting problems as there was a time when spinners faced a lot of hardship and as a result of that even today 77 units are closed for the last two years.

Mr Siddik claimed that out of the Rs40 billion textile package spinners would only get Rs1.5 billion while the rest (Rs38 billion) will be given to the value-added sector in the form of refinance and research and development support.