Criticizing the cap on cotton yarn exports, the All Pakistan Textile Mills Association has urged the government to leave the free market mechanism intact.

Anwar Ahmed Tata, Chairman of APTMA urged the government to provide duty free import of man-made fibre and abolish all the countervailing measures in this regard to reduce load on consumption of cotton and encourage usage of man-made fibre. He said the government should encourage supply side of the spinning industry by providing relief to the sick and closed units and also encourage the establishment of new spinning units by reducing mark-up rate on long term loans.

APTMA leaders said during last three to four months production of yarn increased to 245,000 tonnes per month, out of which requirement for downstream industry was 110,000 tonnes per month, weaving sector consumed 60,000 tonnes per month while there was an additional yarn (25,000 tonnes) per month available after imposition of quota of 50,000 tonnes per month on export of cotton yarn.

Because of the restriction on export of cotton yarn, the spinners would be reluctant to import cotton and that there would be shortage of raw cotton and yarn from April onward, as the industry has cotton till March this year.