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.
