KARACHI, March 24: Towel manufacturers and exporters have urged the government to immediately look into the problem of rapidly rising yarn prices which is likely to result in large-scale closures and unemployment in the industry.

In a joint meeting the representatives of Towel Manufacturers Association (TMA) and Pakistan Commercial Exporters Towel Association (PCETA) has sought immediate government intervention into the matter.

TMA chairman Pervez Ahmed and PCETA chairman Jamil Noorani stated that the present position was that all sale contracts entered with local and foreign buyers during the current year had become unfeasible.

They pointed that there had been a hike of around 35 per cent in yarn prices since beginning of this year which was likely to result in large-scale closure of towel units all over the country.

There had been worldwide fall in cotton production which pushed cotton and cotton yarn prices skyhigh. The import of cotton is also not possible under the circumstances particularly after the start of US-led war in Iraq.