Tainted cotton yarn hurting exports
By Nasir Jamal | | 3rd May, 2011
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LAHORE, May 2: Foreign buyers are increasingly complaining against the rising quantum of contamination in cotton yarn being exported from Pakistan.

In a letter to the commerce ministry and the Trade Development Authority of Pakistan (TDAP), the Korean buyers have pointed out that the percentage of contamination in the Pakistani cotton yarn has already grown to seven per cent.

The level of contamination in the Indian and Uzbek yarn is three to four per cent.

TDAP officials told Dawn on Monday that the rising levels of contamination in the yarn being exported could hit its exports from Pakistan.

“While the drop in international cotton prices has led to a substantial fall in the export of yarn from Pakistan, it is not the only factor affecting it. The Far Eastern buyers are also reluctant to source yarn from Pakistan because of growing contamination in it,” a TDAP official said.

He said the TDAP had started consultations with various stakeholders to consider ways to reduce contamination in yarn.

It may be recalled that the country’s cotton yarn exports fell to 16,000 tons in March from the previous monthly average of 44,000 tons.

The yarn makers say the fall in the commodity’s export was directly linked to sharply declining cotton prices. “Now the foreign buyers want us to sell our product at future rates of cotton, which is simply not feasible for the industry because it had purchased cotton at record high prices,” a spinner said.

When contacted a garments exporter also complained of shortages in the domestic market of 1.5 count yarn (coarse yarn) used to make cotton rugs and certain specialised garments. “This means that contamination was also being spun by the spinners into yarn being sold in the local and foreign markets,” he said.

All Pakistan Textile Mills Association (Aptma) Chairman Gohar Ejaz said the issue of contamination was linked to cotton productivity. He said only the substantial increase in domestic cotton output could ensure reduction in contamination.

India has done this by increasing its cotton production to 35 million bales in just a few years.

The value-added manufacturers claim that the higher level of contamination was blocking further value addition in Pakistani textiles. “How can we produce a quality product for foreign markets unless we get good quality yarn?” a readymade garment exporter remarked. He said the exporters of value-added textile products had to work at low margins and allow discounts to buyers because of such issues. Additionally, he said, “we are made to pay international price for our raw material in spite of contamination”.

He warned the apparel industry would be forced to import yarn for its use if the spinners did not reduce the contamination level in their product or cut prices according to its value. “We are no longer prepared to pay high prices for poor quality yarn,” he warned.

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