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Requisition to ban cotton yarn exports
Oct '10
Shri.A.Sakthivel, President, TEA (Tirupur Exporters' Association) requesting Hon'ble Union Minister of Textiles to take steps to ban cotton yarn exports immediately to protect knitwear sector.

We would like to thank the Hon'ble Minister for continuously taking up a lot of measures to protect the textile industry and also export knitwear sector. We are proud to mention that as stated by our Hon'ble Chief Minister recently, the functioning of Textile Ministry has changed a lot after your taking over and your sincere effort resulting in imbibed with fresh thoughts, helping for rejuvenation of the textile industry. It is not out of place to mention that dynamism and pro activism have now become the order of the day, all because of you.

On the yarn price front, we wish to make a note of it that as advised in the meeting held in Chennai on 8th October 2010, we had sent letters to both textile Associations SIMA & TASMA requesting to come forward to reduce the yarn prices for all counts.

For 40s CHy yarn, the price has to be reduced to Rs.195/- per Kg. from the existing price level of Rs.205/- per Kg. and for other counts, the proportionate reduction can be made.

More importantly, we had also mentioned in our letter that the revised prices had to be maintained for three months, even after the cotton prices goes down from the existing prices, as suggested by the Hon'ble Minister.

As we were waiting for favourable response, unfortunately, both SIMA & TASMA, in their replies to our Association, have informed that it was impossible for them to make any attempt on fixing of the yarn price due to increasing of cotton prices.

Moreover, most of the mills have stopped the supplying of yarn by citing a reason as the non-availability of cotton in the market. It is to be noted that once, if we are not getting the yarn, then, we may have to stop our units.

Our concern is that as we have booked our orders earlier, we are committed to meet out the delivery schedule failing which not only the orders will be cancelled, but also, we will be ultimately losing our buyers, forever. We regret to mention that the Tirupur knitwear sector will plunge into unrecoverable situation.

Considering the gravity of situation, we request the Hon'ble Minister to help to take following measures to protect knitwear export sector.


• Impose ban on cotton yarn exports immediately till the yarn supply is restored and the market becomes normal.
• The ban of cotton yarn exports may be lifted once the yarn supply restores in the market subject to the following conditions.
• 10% of cotton yarn production only should be exported on count wise.
• 15% advalorem export duty should be imposed on cotton yarn.
• Cotton yarn export should also be calibrated.


• The cotton exports should not be permitted above 55 lakh bales.

We request the Hon'ble Minister to kindly treat this letter as SOS and help to implement the measures so as to protect the knitwear export sector.

Tirupur Exporters' Association

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