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All Pakistan Textile Mills Association Strongly Opposes Demand of Ban Or 15% Duty On Export Of Coarse Yarn and Raw Cotton

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by January 18, 2012 General

Karachi: Mr. Muhammad Yasin Siddik, Chairman, Sindh-Balochistan Region of APTMA has categorically denied making the statement published in a section of press whereby asking for a ban or 15% duty on export of cotton and cotton yarn. He said that APTMA has always been of the view that free market mechanism is the best policy to adopt and this policy has been successful since the last many years and has helped the Govt. get rid of the subsidy culture as well.

In a statement issued to the press, Mr. M. Yasin Siddik said that during the last five years production of cotton was ranging between 11.4 to 11.7 million bales of 170 kg each except in the year 2009-10, when about 12.7 million bales were produced in the country.

The estimated production for the current year i.e. 2011-12 announced by the Federal Committee on Agriculture of Government of Pakistan on 20th December 2011 is 12.598 million bales and by 15th January 2012 about 12.5 million bales have already arrived in the local market, he added. Therefore, by the Grace of God and despite the damage from the rains in Sindh, Pakistan will have a bumper crop this year.

Mr. Yasin Siddik further said that traditionally about 75% of yarn (cotton yarn) produced in the country is sold in the local market which is consumed by the downstream industry. He said that the total production of spinning sector is about 246 million kilograms per month from January 2011 to December 2011 out of which on an average 37.8 million kilogram of yarn was exported during January 2011 to November 2011 and remaining around 84.6% of cotton yarn produced in the country was sold in the local market which clearly proves that abundant yarn is available for the downstream industry.

Mr. M. Yasin Siddik said that average per month exports of cotton yarn during the current financial year is 38.620 Million Kilograms which is well below the average per month exports of cotton yarn as compared to last year which was 41.303 Million Kilograms.

On the other hand expected production of cotton for the current year i.e. 2011-12 is almost same as of 2009-10 and about 10 percent higher than during last five years, hence, there is no shortage of cotton as well as cotton yarn in the country.

Chairman, Sindh Baluchistan Region of APTMA said that the imposition of quota or restriction on exports of cotton and cotton yarn is a measure that will hamper the growth and progress of the textile trade and lead to further complications for the spinning as well as the downstream sector, resulting in distortions in the entire textile chain and promote inefficiencies.

He said that the experience of just last year as compared to the year before the last is proof that the total exports of textiles reached $ 13.805 Billion which was 35.1% more than the total textile exports of the year before last when a policy of restricted yarn exports was being pursued by the then Textile Minister.

He further said that the textile sector is a largest employment provider would badly suffer due to these increases as more than 40 percent of textile industry has become uncompetitive due to gas load-shedding.

He viewed that industry has the potential to meet the target of exports fixed by the Government provided issues concerning to cost of doing business etc. are taken care of by the Government.

Mr. M. Yasin Siddik emphasized that there is no shortage of cotton and cotton yarn in the country and the demand of value added sector has no moral ground, even then if they feel any so-called shortage of cotton and cotton yarn or price differential they are free to import duty free cotton yarn vide SRO 15(I)/2010 dated 6th January 2010.

For more information, contact:
All Pakistan Textile Mills Association
APTMA House, 44-A,Lalazar,
Off: Moulvi Tamizuddin Khan Road,
Karachi -74000, Pakistan.
Phone: 0092-21-111-700-000
Fax: 0092-21-5611305
Web Site:


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