Pakistan Restricts Yarn Export

The Pakistani Cabinet committee on textile has decided to restrict the quantum of cotton yarn export to 50 million kg per month for the remaining six months of the current fiscal year. The committee, however, deferred a proposal to provide two percent rebate to spinners as relief.

The committee decided that export of cotton yarn would be based on first come first served basis till June 30, 2010. Trade Development Authority (TDAP) has been authorised to cancel registration of violators.

The decision was taken after considering an abrupt rise in the export of yarn over the past few weeks, pushing prices for downstream local industry to all time high. During past six months (June-December 2009), more than 368 million kg yarn was exported.

Experts said high anticipated production coupled with restrictions on export are likely to stabilise the prices for the local industry that has recently been pushing the government for banning export of yarn. But the government kept on resisting such pressures, saying it would hurt growers by depriving them of what they earn from the international market.

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