LAHORE: The Pakistan Yarn Merchants Association (PYMA) has urged the FBR to impose 15 percent regulatory duty on the import of Indian cotton yarn as the high import of cotton yarn from New Delhi is not only hurting the local spinning industry but also causing loss to the national exchequer.
Talking to Customs Today, PYMA Central Committee Member Saqib Naseem said that he supported All Pakistan Textile Mills Association demand to stop the increase in dumping of Indian cotton yarns in the country. He added that an abnormal rise in imports of cotton yarn from the India was affecting the local industries. He argued that China has reduced its import of cotton yarn that not only hurt the Pakistani spinning industry but also Indian industry and resultantly it embarked a negative effect over the export of Pakistani yarn.
He said that Pakistani industry was also facing problems due to the shortage of gas and electricity that could not compete with the industries of countries those were facilitated by their governments with tax exemptions and cheap energy. He suggested that local cotton yarn should be utilized instead of importing.
According to statistical data of trade, Pakistan importers have imported almost worth Rs 34.3 million cotton yarns during the first 15 days of January 2015. India dumped 26,000 tons cotton yarn in 2013-14 fiscal year compared with 17,000 tons in 2012-13. Similarly, Indian exporters have dumped cotton yarn almost 2500 tons per month during July-November 2014-15.
On the other hand, the APTMA has also been demanding imposition of Regulatory Duty (RD) to abolish the import of cotton yarn from India and it was also suggested by the Federal Board of Revenue to impose the duty over the cotton yarn from India, while the Economic Co-ordination Committee (ECC) has postponed a proposal regarding the imposition of a five percent RD on the import of cotton yarn.
