Indian lint import via land

The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) have asked the Government to allow import of cotton from India through land route.

According to FPCCI President Tanvir Ahmed Sheikh, though import of cotton from India was allowed, but it had been restricted to long staple quality and other varieties of short staple, etc. had to be imported through sea route. As a result of this condition, the textile industry had to bear extra cost of three cents per lb which had increased their production cost and made the industry uncompetitive on the world markets.

All Pakistan Textile Mills Association (APTMA) has called upon the Government to allow import of medium staple cotton from all land routes including Wahga to meet the shortage of silver fibre in the wake of sharp reduction in cotton production in the country.

APTMA spokesman said the revised production estimates, down from earlier estimates of 14.14 million bales to 12.8 million bales, announced by the Ministry of Agriculture has caused panic in the textile sector. Cotton prices have risen by Rs. 250 to Rs. 300 per maund creating unprecedented price hike at the time of peak cotton season.

He said it will have a grave impact on the entire textile value chain if this sector is now deprived of access to raw material (cotton and PSF) at competitive prices.

APTMA has cautioned that Government of worsening crisis in textile industry caused by energy supply failure, cotton crop failure, and restrictive duties on man made fiber, increasing cost of energy and refusal of foreign buyers to come to Pakistan. The Government should give financial compensation to the Industry for supply side failure.

The textile industry is already suffering on account of rise in interest rates and electricity costs, and cannot further sustain unreasonable hike in the prices of its primary raw materials. He also called for abolishing 6.5% import duty on polyester staple fibre to bring relief in the PSF prices and address the core issue of introduction of Bt Cotton production technology.