As if the cotton industry was not already in enough crisis, the cotton mafia is making things worse for the sector by price manipulation and yarn hoarding. An appeal has been submitted to the Prime Minister Imran Khan to pass directives for the forensic audit of the yarn producers to break cartel of cotton mafia in line with the actions taken by the PTI government. This was made by The Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA).
“In an open letter to the PM, it was point out that the textile manufacturers have increased the rates of yarn by more than 40 percent in a very short span, creating artificial shortage on the excuse of lower production of cotton in the country despite declining prices of cotton in the international market, hitting the apparel sector exports badly,” said PRGMEA in a press release.
Proper steps are need to be taken by the Prime Minister Imran Khan if they want to end this cycle and take down the textile industry cartel. They should be sent a crystal clear message that the manipulation of prices is not something that will be tolerated in the future and the outcome of committing these crimes will have them face the full brunt of law said the PREGMA Chairman, Sohail Sheikh.
PREGMA has also requested the Federal Board of Revenue (FBR) and Federal Investigation Agency (FIA) to focus on yarn dealers that have been hoarding yarns on a big scale. If proper raids are conducted then this issue can be resolved. As due to this hoarding, the local market faces shortage and the rates are also increased.
