8.
persuasion and compulsion is changed. An extreme example of this flexibility is that, in contrast to the situation described under 24(b), the current Pakistani scheme takes advantage of world shortages and high prices by charging a levy on cotton yarn exports.
24.
The following notes describe schemes recently (India and Pakistan) or, currently (Turkey) in operation. All the information is drawn from sources in the country concerned:
(a)
(b)
India (extract from circular letter dated 20 July 1972
issued by the Cotton Textiles Export Promotion Council).
"A decision has been taken by the Indian Cotton Mills' Federation, vide their circular No. STT-36(3)/2907-72 dated the 17th July 1972, to introduce obligatory exports on a voluntary basis, the relevant parts of which read as follows:-
"(1) All composite mills will take upon themselves
the obligation to export from 1st July to 31st December 1972, 115 million sq.metres of cloth to U.K. and to cover by fresh contracts, the balance quantity of 20 million sq.metres of export to Russia under the Cotton Conversion Deal. (Attached is an illustrative list of qualities that can be exported).
(2) The obligation of each mill shall be calculated
in proportion to its loom working in the year 1971. The figures come to an obligation of 12.2 sq.metres per 100 loom hours or 0.976 sq.metre per loom shift of 8 hours in respect of U.K. and 2.15 sq.metres per 100 hours or to 0.172 sq. metre per loom shift in respect of Russia. (Figures of loom hours are given by mills in CST-B and looms worked on 100% staple fibre in CST-F and on blends in CST-J).
(3) Mills will have the facility to fulfil their
obligation either by themselves or by getting other mills to do the export on their behalf.
(4) A mill which does not fulfil its obligation
(either by its own export or by getting another mill to export) will have to pay to the Export Promotion Fund of the Federation, a penalty of 25 P. per sq.metre for the shortfall in its performance.
Pakistan (extract from "Textile Asia" October 1971)
#1
Speaking for management on the cost of production in the industry Mr. Zakaria Bawany, Managing Director of R.R. Textile Mills Ltd., Karachi, gave the following breakdown of expenditure incurred in the manufacture of cotton yarns at the prevailing price of raw cotton:
Selling Price: Add 15% wastage:
Rs 144 per maund; Rs 21.60;
Total, Rs 165.60 maund or RS 2.02 per 1b.
In a newly established mill the cost of production (including salaries, wages, stores, packing, electricity, interest, travelling expenses and all overheads, but not depreciation) comes to 60 paisa per lb of cotton yarn. Thus the cost of the yarn comes to:
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