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The Southern India Mills’ Association

Committed to Foster the Growth of the Textile Industry

Textile industrialists seek permission to import hydrogen peroxide

Textile processing industrialists while expressing grave concern over artificial price hike and shortage of Hydrogen Peroxide (HP) in local market have sought permission from Ministry of Commerce to import it on zero rated duty.
All Pakistan Textile Processing Mills Association (APTPMA) expresses with utter surprise and consternation that the local manufacturers of HP has abruptly reduced the supply of HP in the country which has created panic amongst our member units who are the one the major consumers of HP.
Saleem Parekh, Central Chairman APTPMA said that HP is used as a basic raw-material by the Textile Processing Units. “Shortage of HP would adversely affect the export of textile fabrics/ garments and deprive the country of valuable foreign exchange to the tune of billions of rupees, besides closure of hundreds of textile industrial units, and would throw thousands upon thousands of wage-earners out of jobs. In a recently meeting held in the office of Textile Commissioner Organization under the chairmanship of Ahmed Bakhsh Narejo, Textile Commissioner, Ministry of Textile & Industry, which was attended by the all stake holders except Sitara Peroxide.
The country’s total demand of Hydrogen Peroxide is 4500.M.Tons/Month, out of which 99% is consumed by Textile Industry. There are two plants of this chemical in the country, namely Sitara Peroxide having a production capacity of 2550 M.Ton/month & DESCON Oxychem, 2400 M.Ton/month respectively.
The demand of Hydrogen Peroxide for Textile Industry of Northern zone (Punjab+KPK) is about 2200 M.Ton/month where as it is about 2300 M.Ton/month in Southern zone (Sindh+Balochistan); total demand of the Country is about 4500 M.Ton/month.
It is learnt that, DESCON Oxychem is supplying 1175 M.Ton/month out of its total production of 2760 M.Ton/month to south zone which is 42% of its production, on the other hand M/s Sitara Peroxide having total capacity 2550 M.Ton/month is producing only 1780 M. Ton/month which is only 70% of its full capacity. Out of its current production of 1780 M.Ton/month, it is supplying only 200 M.Ton/month to south zone which is only 11%. Hence total supply to south zone is 1375 M.Ton/month i.e. a shortage of 925 M.Ton/month to the tune of about 60% being faced by South zone Textile Industry.
Due to this acute shortage, the price fluctuation is very high & the situation may compel the SME Sector for closure, whereas, the LSM are surviving by importing through DTRE, which impart Trade Bill. He emphasized that TCO should intervene & contact Sitara Peroxide & press Sitara Peroxide to bring its unit in full swing and ensure an un-interrupted supply of Hydrogen Peroxide to the South zone in the true sprits which were under take at the time of imposing duty & antidumping duty on Hydrogen Peroxide. He further said that matter should be resolved on war footing otherwise closure of Textile Industry will take place. The Director (Textile) informed that the M/s Sitara Peroxide has been approached several times but they have tended to response.