LAHORE : The Trade Development Authority of Pakistan (TDAP) has failed in fair implementation of quota restriction on exports of cotton yarn, leading to a panic like situation in the market. Sources in the textile industry told Business Recorder that a flawed registration system for export of 50,000 tons cotton yarn a month has resulted into a rat-race between exporters, registering themselves in advance to avoid any embarrassment.
This situation has earned disadvantage for many, especially those fighting bravely with logistic problems, procedural delays and energy shortfalls. It may be noted that the Cabinet Committee on Textiles had capped export of cotton yarn at a monthly volume of 50,000 tons until June 30, 2010. TDAP accordingly devised registration system, entertaining registration applications on first-come-first-served basis with duly bank attested LC documents.
However, this system failed immediately after its start, as the exporters rushed to the registration authority and got themselves registered in advance. Resultantly, TDAP registered 50,000 tons of cotton yarn for exports in first four days of current month ie February 2010.
Sources said this panicky situation has perturbed many exporters, particularly those having their units far away from the sea port, as they are supposed to deal with logistic issues besides the procedural delays and energy shocks before fetching their consignment to the port.
Similarly, sources said, although TDAP had kept Lycra, Dyed, Heather Grey/Mélange, Slub and Bleached/singed yarns out of the quota restriction but it has imposed many invisible and non-tariff barriers on the export of these special yarns. They said the government has imposed many prerequisites before accepting the export document of these five yarns, again hindering the free market mechanism on exports of cotton yarn from the country.
Textile industry sources said the Textile Ministry should immediately direct the TDAP to count the actual shipments rather than the LCs for export of 50,000 tons cotton yarn under the quota restriction arrangement. It would not only facilitate the exporters at large but also discourage the vested interest elements to play with the situation, they added.
Copyright Business Recorder, 2010 |
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