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Value-added sector pessimistic of cap on yarn exports
Feb '10
The value-added textile sector like apparels and home textiles are pessimistic regarding the cap imposed on quantity of yarn that can be exported. They observe that the notification and subsequent amendments related to capping of exports is not as per the decision arrived at in the meeting of the Cabinet Committee on Textiles.

The value-added sector is aggrieved by a recently amended circular which has changed “Exports of up to 32s count” in the original circular and replaced it with “Export of cotton yarn” would be capped at a monthly volume of 50 million kgs, along with which export contracts will be registered by the TDAP on first come first serve basis.

Experts from the sector aver that the notification to cap yarn exports will not help bring down prices of yarn nor create proper availability of the same, due to the changed amendment. They point out this will only result in business moving from Pakistani shores to neighbouring countries like India, Bangladesh and China.

Fibre2fashion News Desk - India

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