.”According to the revised regulation, cotton yarns (other than sewing
threads) not put up for retail sale are now listed under the “free
list.” Contracts for cotton yarn exports must be registered with the
Directorate General of Foreign Trade and can be shipped once verified by
the Indian customs.Prior to the lifting of restrictions, cotton yarn
exports were capped at 720 million kgs for the 2010/11 fiscal year,
which ended on March 31st, 2011.Dr. Selvaraju, Secretary General of the Coimbatore-based Southern
India Mills Association (which has over 400 spinning mills as its
members) said that “India can export up to 1.2 billion kgs of yarn
because the domestic demand has shrunk.””.The market in the upstream processing industry in Tirupur has shrunk
by 30%, meaning spinning mills’ production capacity can easily meet the
domestic demand, Dr. Selvaraju said. He added, however, that the
Ministry of Textiles could ask for export restriction of 845 million kgs
of cotton yarn later this year .
.Sources say this latest change in India’s export policy for cotton
yarns has not been well-received by the Tirupur Exporters Association,
which represents knitters and readymade garment exporters .
. ”
Date:4/7/2011
Source:AL Yom Al Sabae Newspaper