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News Clips 31 October, 2015


[ Cartel to raise yarn prices after 10 percent RD ]
[ Yarn makers’ ‘cartel’ pushes prices up by 50pc ]
[ Yarn price shoots up by 50pc after RD imposition ]
[ Cartel lifts yarn prices by 50pc after govt’s ‘unfair tax decision’ ]
[ 10% import duty: Yarn cost goes up, 100-pound bag now Rs1,200 ]
[ Cartel lifts yarn prices by 50% after govt unfair tax decision ]

Cartel to raise yarn prices after 10 percent RD    [ top ]

Business Recorder, October 31, 2015
The yarn manufacturers have set up a cartel to increase yarn prices to Rs 1200 per 100 pounds from Rs 800 since the imposition of 10 percent regulatory duty on the import of yarn and fabric - a hike of 50 percent just in a week to directly hit apparel sector hard. 

Chief Co-ordinator of Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) Ijaz Khokhar said though the implementation of another 10 percent duty on yarn would be started from next month yet the additional cost was being included on yarn import deliveries to the apparel sector since the finance minister made announcement in that regard. 

He said even the consignments booked in advance were also being blocked while the local manufacturers had directed their dealers to stop floating new orders till the imposition of additional tax. 

"The Association appeals the government to revisit the imposition of additional Regulatory Duty decision and take all sub-sectors of the textile chain on board before making the final decision because the Prime Minister has yet to meet with the export-oriented industries and hold a last round of talks with them," he added. 

Yarn makers’ ‘cartel’ pushes prices up by 50pc   [ top ]

DAWN, October 31, 2015
LAHORE: Yarn manufacturers are acting like a cartel, the value-added apparel sector claims, as they have raised prices by 50 per cent to Rs1,200 per 100-pound bag from Rs800 since the imposition of 10 per cent imports duty.

Pakistan Readymade Garments Manufacturers and Exporters Ass¬ociation (Prgmea) Chief Co¬ordi¬¬nator Ijaz Khokhar, in a press statement issued on Friday, said cotton prices climbed soon after the government announcement.

He said even the consignments booked earlier were blocked and spinners’ lobby directed their dealers to stop booking new orders till the imposition of regulatory duty next month.

“Prgmea appeals to the government to revisit the imposition of additional regulatory duty and take all sub-sectors of the textile chain on board before making a final decision.”

He said the textile ministry was fully aware of the fact that the spinning sector was making value-addition of just 59pc while performance of value-addition by woven garments sector was 846pc and hosiery and knit garments 616pc. 

Yarn price shoots up by 50pc after RD imposition   [ top ]

The Nation, October 31, 2015
PRGMEA appeals govt to revisit imposition of additional regulatory duty decision to save apparel industry. 

LAHORE - After the recent imposition of 10 per cent regulatory duty on import of yarn and fabric, the yarn manufacturers have established a cartel across the country, which has resulted in lifting yarn rate by 50 per cent to Rs1200 per 100 pounds bag from Rs800 in just a couple of weeks. 

Industry stakeholders said that though the implementation of another 10% duty’s imposition on yarn would be started from next month yet the additional cost is being included on yarn import deliveries to the apparel sector since the finance minister made announcement in this regard. Even the consignments booked in advance are also being blocked while the local manufacturers have directed their dealers to stop floating new orders till the imposition of additional tax. 

“PRGMEA appeals the government to revisit the imposition of additional regulatory duty decision and take all sub sectors of the textile chain on board before making the final decision because the Prime Minister has yet to meet with the export-oriented industries and hold a last round of talks with them. 

” PRGMEA chief coordinator Ijaz Khokhar said that prevailing situation clearly indicates that the government is promoting yarn cartel, because the authorities did not bother to take their own ministries of Commerce and Textile onboard while making this blunder. “These ministries strongly opposed the unilateral proposal of the finance ministry which would hit the whole value-added apparel sector. 

As apparel sectors already have a very limited production line owing to lack of latest fabric varieties at local level the harsh duties would result into significant decline in apparel export. 

Ijaz khokhar said that apparel industry is already suffering with the low productivity due to shortage of electricity and gas. Unit cost of doing business had gone very high to compete with our regional competitors. The government, instead of lowering power tariff, removing GIDC or clearing outstanding refunds to facilitate the whole chain of textile sector, has taken discriminatory decision to upset the free market economy- the slogan raised constantly by the spinning mafia. 

It is unfortunate that a case of anti-dumping against Indian yarn import by the spinning mills is still pending with National Tariff Commission (NTC) which is authorized to investigate any escalation in import and advise the government to rationalize customs tariff to keep balance among all sub sectors of textile chain. 

But finance ministry is so powerful that it did not bother to consult the NTC before imposing additional taxation measures. 

Cartel lifts yarn prices by 50pc after govt’s ‘unfair tax decision’   [ top ]

Pakistan Today, October 31, 2015
The yarn manufacturers have established a cartel across the country lifting yarn prices to Rs 1,200 per 100 pounds of bag from Rs 800 since the imposition of 10 percent R&D on the import of yarn and fabric – a hike of 50 percent just in a week to directly hit apparel sector hard. The PRGMEA chief coordinator, Ijaz Khokhar, said though the implementation of another 10 percent duty’s imposition on yarn would be started from next month yet the additional cost was being included on yarn import deliveries to the apparel sector since the finance minister made announcement in this regard.

He said even the consignments booked in advance were also being blocked while the local manufacturers had directed their dealers to stop floating new orders till the imposition of additional tax. “PRGMEA appeals the government to revisit the imposition of additional regulatory duty decision and take all sub sectors of the textile chain on board before making the final decision because the prime minister has yet to meet with the export-oriented industries and hold a last round of talks with them.”

The PRGMEA chief coordinator said that the prevailing situation clearly indicated that the government was promoting yarn cartel because the authorities did not bother to take their own ministries of commerce and textile onboard while making this blunder. “These ministries strongly opposed the unilateral proposal of the finance ministry which would hit the whole value-added apparel sector, represented by Pakistan Readymade Garments Manufacturers & Exporters Association, Pakistan Hosiery Manufacturers & Exporters Association, Pakistan Knitwear & Sweater Exporters Association and Pakistan Cotton Fashion Apparel Manufacturers & Exporters Association.

The PRGMEA chief coordinator said that the textile ministry was fully aware of the fact that spinning sector was making value-addition of just 59 percent while performance of value addition by woven garments sector was 846 percent and hosiery and knit garments 616 percent. “This is a very alarming situation because the export is declining constantly from 10 percent in August 2015 to 4 percent in September 2015. Pakistan’s export target cannot be achieved because at the moment nobody can predict where the yarn prices would stand in near future. The non-utilization of cheap raw material from China and India will force foreign buyers to move to neighboring countries.”



10% import duty: Yarn cost goes up, 100-pound bag now Rs1,200   [ top ]

The Express Tribune, October 27, 2015
LAHORE: Yarn manufacturers have allegedly established a cartel across the country and increased the price to Rs1,200 per bag of 100 pounds compared to the earlier price of Rs800, a hike of 50% in a week that will directly hit the apparel sector.

The price rise came after the imposition of 10% regulatory duty on the import of yarn and fabric.

“Though the duty will be slapped from next month, the additional cost is already being included in yarn import deliveries to the apparel sector,” said Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) Chief Coordinator Ijaz Khokhar.

He said even consignments booked in advance had been blocked and the local manufacturers had told their dealers not to float new orders till the imposition of the additional tax.

“PRGMEA requests the government to reconsider the decision of increase in regulatory duty and bring all sub-sectors of the textile chain on board before making a final decision.”

He was of the view that the prevailing situation clearly indicated that the government was promoting the yarn cartel. “The Ministry of Textile is fully aware that the spinning sector is making value addition of just 59% while value addition by the woven garments sector stands at 846% and hosiery and knit garments at 616%,” he said.

He claimed that Pakistan’s export target could not be achieved as nobody could predict where yarn prices would stand. 

Cartel lifts yarn prices by 50% after govt unfair tax decision   [ top ]

Daily Times, October 31, 2015
KARACHI: The yarn manufacturers have established a cartel across the country lifting yarn prices to Rs 1200 per 100 pounds of bag from Rs 800 since the imposition of 10% R&D on import of yarn and fabric- a hike of 50% just in a week to directly hit apparel sector hard.

PRGMEA chief coordinator, Ijaz Khokhar, said though the implementation of another 10% duty's imposition on yarn would be started from next month yet the additional cost is being included on yarn import deliveries to the apparel sector since the finance minister made announcement in this regard. He said that even the consignments booked in advance are also being blocked while the local manufacturers have directed their dealers to stop floating new orders till the imposition of additional tax. "PRGMEA appeals the government to revisit the imposition of additional Regulatory Duty decision and take all sub sectors of the textile chain on board before making the final decision because the Prime Minister has yet to meet with the export-oriented industries and hold a last round of talks with them."

PRGMEA Chief Coordinator said that prevailing situation clearly indicates that the government is promoting Yarn Cartel, because the authorities did not bother to take their own ministries of Commerce and Textile onboard while making this blunder. "These ministries strongly opposed the unilateral proposal of the finance ministry which would hit the whole value-added apparel sector, represented by Pakistan Readymade Garments Manufacturers & Exporters Association, Pakistan Hosiery Manufacturers & Exporters Association, Pakistan Knitwear & Sweater Exporters Association and Pakistan Cotton Fashion Apparel Manufacturers & Exporters Association. PRGMEA chief coordinator said that the textile ministry was fully aware of the fact that spinning sector was making value- addition of just 59% while performance of value addition by woven garments sector was 846% and hosiery and knit garments 616%. This is a very alarming situation because the export is declining constantly from 10% in August 2015 to 4% in September 2015. He claimed that Pakistan's export target cannot be achieved because at the moment nobody can predict where the yarn prices would stand in near future. The non-utilization of cheap raw material from China and India will force foreign buyers to move to neighbouring countries.