Spinners are fluctuating yarn prices from minute to minute amidst rising uncertainty on cotton trade in the international market, already reached to 1.6 dollar per pound. Sources said the prevailing circumstances in the yarn market are heading towards another chaotic situation like the last year, inviting troubles for fragmented value added industry.
Talking to Business Recorder, Chairman PRGMEA Ejaz Khokhar said the spinners were changing the quoted prices after every 20 minutes, refreshing their previous offer on the excuse that the cotton prices are skyrocketing internationally. He said survival of knitted and woven garments units is becoming difficult with every passing moment.
Khokhar also feared that the value-added exporters might be into further troublesome situation with export of yarn under recent market access offer made by the EU. He said both the yarn and gray cloth are allowed to make entry to the EU market on concessional duty rates.
According to him, any such situation would push the value-added industry to the wall already in trouble with rising cost of finance and scarcity of electricity. It may be noted that the EU has not incorporated hot export categories of Men's and Boys' denim wear in the concessional list under the market access plan. Instead, it has included Women's and Girls denim wear to the plan, which constitutes only 30 percent of total exports from Pakistan. Khokhar said the PRGMEA has decided to take up the issue with the EU with the help of International Apparel Federation to induct the hot categories in the EU list.