The All Pakistan Textile Mills Association (APTMA), responding to concern of All Pakistan Cotton Power Looms Association over rise in yarn prices, has attributed it to a 35% increase in polyester staple fibre prices and high cotton rates.

In a statement APTMA, on behalf of its yarn manufacturing member, said the principal factor behind the rise in yarn prices was a steep increase in PSF prices in a short span.

The association pointed out that the largest PSF producer of the country had shut down completely, resulting in acute shortage and soaring PSF prices.

The market is experiencing a shortage of more than 11,000 tonnes of PSF every month. This shortage along with the protection provided by imposing anti-dumping duty on PSF imports has enabled local PSF manufacturers to raise prices periodically.

Another factor, the association said, which weighed heavily on supply of yarn at competitive prices was unplanned gas load shedding which disrupted supply to majority of the mills running on gas.

APTMA said increase in the price of cotton and other inputs had also contributed to the rise in yarn prices and pointed out that exports of cotton-polyester and polyester yarn was negligible ie less than 5% of total production and was not a cause for their shortage and high prices in the domestic market.