All Pakistan Textile Mills Association (APTMA), showing serious concern on lower cotton output, has urged the federal government to remove duty and taxes on the import of raw cotton to support the domestic textile industry.
Addressing a press conference here on Tuesday at APTMA office, newly elected Chairman Dr Amanulla Kassim Machiyara said that as per initial estimates there is shortfall of some 5 million cotton bales in the demand and supply during this season due to massive decline in the cotton production.
Raw cotton prices are now higher than import substitution and if this trend persists then the textile industry will be rendered uncompetitive directly impacting the country's exports, he said and added that the domestic cotton prices are gradually increasing due to short crop and reached all most equal to price of high quality US cotton and the prices are likely to further increase on higher demand, he added. He said that initial cotton crop estimate was some 15 million bales, later it was revised up to 12 million bales and now as per second revision, cotton crop may be 10.2 million cotton bales. However, he said that, the recent market survey suggests that cotton output end of this season will be even lower than 10 million bales as against the domestic industry demand of 15 million bales.
The Chairman APTMA informed that the latest cotton production statistics of Pakistan Cotton Ginners Association (PCGA) and the domestic cotton prices shows the current arrivals to be well short as compared to the corresponding period last year. Comparative analysis of cotton arrival up to 1st October 2019 versus 1st October 2018 shows a 39 percent decline in cotton arrival.
In the latest development in crop estimates, he urged the federal government for immediately withdraw of 3 percent Custom Duty and 2 percent Additional Duty and 5 percent Sales Tax levied on the import of raw cotton to enable the textile industry to meet its requirements for domestic as well as for export orders.
The removal of taxes and duty on import of raw cotton will support the textile industry to fulfill its foreign commitment, he added. Machiyara mentioned that Pakistan's textile industry requires medium and longer staple contamination free and organic cotton, which are not being produced in Pakistan and always textile mills need to import to produce specialty yarns.
He said that the government should act without further delay and announced an emergency to support the domestic textile sector. The import of cotton at low cost will help the industry to fulfill its export commitments.
The Chairman APTMA has pleaded with the Prime Minister, Ministry of Commerce for immediate removal of duty and taxes on import of cotton so that the textile industry could retain its competitive edge.
On the occasion, former chairman APTMA Yasin Siddik, Asif Inam and others were also present and talked about the current situation of the textile industry. They also demanded for relief in shape of removal of taxes and duties on import.
Published On : 09-10-2019
Source : Business Recorder
