Import duty on Indian yarn opposed

By Mohammad Saleem

FAISALABAD: Value-added textile exporters are strongly opposing the proposal of 15 per cent duty on Indian yarn, saying the imported yarn is cheaper and allows them to be competitive with regional business rivals.

“Why are spinners demanding 15pc duty on Indian yarn now? We are still working in the free trade zone. In reality, the spindles have increased in the country and China has stopped importing yarn from Pakistan,” claimed Council of Loom Owners Chairman Waheed Khalid Ramay.

He said that in 2010-11, spinners exported billions of rupees worth yarn to China ignoring the local value-added and weaving sector.

“Owing to unbridled export to China, exporters and weaving unit owners had faced numerous problems and purchased yarn on exorbitant rates,” he added.

He said during peak exports to China, Pakistan’s value-added sector suffered immensely as the price of 40-single yarn had surged to Rs17,500. “However, now its price has come down to Rs13,000 per bag,” he added.

“Spinners are pushing for duty on Indian yarn. This would be against the spirit of free trade and also the interests of the value-added sector,” he said.

Talking to Dawn, Textile Minister Abbas Afridi said that it would be unwise to impose duty on Indian yarn without considering what kind of yarn is being sent to Pakistan.

“India is also exporting the kind of yarn to Pakistan which is not being spun by our factories,” he added.

Pakistan Yarn Merchants Association (PYMA) claims the quantity of Indian yarn dumping in Pakistan is increasing.

PYMA Central Chairman Qaisar Shamas said that in 2012, cotton yarn imported from India was 6,500 tonnes, surged to 30,000 tonnes in 2013 and now is touching about 36,000 tonnes.

Chairman Pakistan Apparel Forum, Muhammad Javed Bilwani told Dawn that they were not in favour of any duty on Indian yarn dumping.

He said the value-added sector had major share in the entire textile chain, however, only 30 spinning mills were raising hue and cry citing losses.

Faiq Jawed, a spinner and executive member of the All Pakistan Textile Mills Association, said government had been providing nothing to the spinning sector which is battling the energy crisis.

On the contrary, he said, the Indian government had been facilitating its entrepreneurs and earmarked Rs 42 billion for the yarn exporters to hit the Pakistani market.

He urged the government to devise a strategy focusing on the status of yarn production and its consumption.