Apparel industry wants utility rates frozen

The textile apparel industry has asked the Government to freeze utilities’ rates for a period of 10 years and also enhance research and development support from 6% to 12% to make the industry competitive in the world market, where tough competition from other nations have reduced their market share.

Different trade bodies, representing value-added textile sector, have come up with suggestions on expectations that the Government is on a way to formulate new incentives package for textile sector which is currently passing through its most difficult time.

The value-added apparel industry has also come up with a strong demand of discouraging cotton yarn exports, which results in higher prices in the domestic market. The industry has argued that if the Government withdraws subsidy incentive on export of yarn being given to spinners for the last so many decades and shift the same for domestic sales, it will have a positive impact on local prices.

The apparel industry pointed out that if the Government reverses the subsidy incentive, it will directly ensure cheaper yarn for export-oriented value-added textile industry. They further stated that one kg export of yarn brings around $2.13, against this one kg of export of garment brings about $7.