KARACHI : The value-added textile sector on Monday offered 10 percent high rates for purchasing cotton yarn, if spinning millers failed to find foreign buyers for their raw items. "We [value-added textile sector] are ready to buy cotton yarn at 10 percent higher advance payments than those of Chinese buyers' offer, if they [spinning millers] do not have any buyers," said the Chairman of Pakistan Apparel Forum [PAF], M Jawed Bilwani, at a press conference held at PHMA House.

He claimed that major spinning mills were enjoying phenomenal profits for exporting mammoth volume of cotton yarn at the expense of local value-added textile sector. He said that the country had exported 116 percent more cotton during the current fiscal year as compared to export of the raw commodity in the last fiscal year, leading to its scarcity on the local market.

"The global cotton production is already five percent lower and unrestricted export of the raw commodity is not in favour of the country," Bilwani said. He said that the country had exported 561 million kg of yarn in 10 months of the current fiscal year as compared to 534 million kg during entire last fiscal year.

"It shows 561 million kg of the commodity were excessively exported while two months of the current fiscal year are still remaining," he expressed fears. He complained that the country had exported cotton for 55 cents per pound and imported the commodity at increased price of 89 cents.

About the Prime Minister's committee to solve the crisis of yarn shortage on the local market, he suggested that it should represent 'neutral members'. "The committee should be based on those members who have no share either in spinning sector or in value-added textile sector. Its recommendations and decisions should also reflect the policy of national interest," he added.

He welcomed the Prime Minister's initiative, even at the end of the current fiscal year, and expressed hope that the government would soon reach a solution to the issue. Bilwani said that the government's policy should be harmonious for all sectors, as it imposed 30 percent regulatory duty on export of copper, whereas in case of cotton yarn, it put only 15 percent duty. "There should be 30 percent regulatory duty on cotton yarn export," he demanded. BR