KARACHI, Oct 27 A large number of apparel and home textiles units fear closure due to rising prices of yarn and its non-availability in the domestic market.

This was stated by leaders of value-added textile associations at a press briefing at the PHMA House on Tuesday.

These leaders were unanimous in their views that if the government did not intervene to check the unbridled export of cotton and yarn the industry will either close down or relocate to some regional countries.

The textile exports registered a decline of 11.4 per cent during the first quarter (July-Sept) of the current fiscal year mostly in the value-added sector, they added.

Giving details they said that towel exports declined by 13.85 per cent, bedwear by 15.42 per cent, whereas export of cotton increased by 39.24 per cent and yarn by 3.45 per cent.

Shabir Ahmed, chairman Pakistan Bedwear Exporters Association (PBEA) said that the government had imposed anti-dumping duty on import of polyester fiber when there is acute shortage of cotton and yarn.

Besides, the regular duty of around 6 per cent, anti-dumping duty in the range of 7 to 12 per cent has made fiber import highly unviable.

How can the industry use such a costly raw material, which is loaded with duties up to 16 to 18 per cent, he asked.

Mr Shabir asked the government not to protect four units involved in production of polyester fiber at the cost of textile sector, which is the largest and highest foreign exchange earner for the country.

Waqar Alam, chairman Towel Manufacturers' Association (TMA) said that yarn constituted 50 per cent of the total costs incurred by home textile industry in production of finished goods.

Therefore, the current rise in yarn prices has an impact of around 14 to 15 per cent on the end cost.

He further said that the slowdown in textile industry would have an adverse impact on a large number of downstream industries, including cardboard, button, zippers, bags, and packing etc.

Kamran Chandna, chairman Pakistan Knitwear and Sweaters Exporters Association (Paksea) said that due to the shortage of yarn export contracts could not be met.

He warned if the situation was not corrected immediately a large number of apparel units will close down.

Jawed Bilwani, chairman Pakistan Apparel Forum said that the textile policy was excellent but the notifications being issued for its implementation are cumbersome and are even difficult to follow.

With regard to availability of yarn he said that the situation had gone so bad that the yarn was not available even on cash payment and this would destroy the apparel industry as it would not be able to meet export contracts.