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Removal of cap on speciality & technical yarn exports
Feb '11
The recently imposed export limit on the producers of yarn has been removed, particularly on manufacturers of value-added speciality as well as technical yarn, but it is subjected to certain conditions.

Another reason for respite in case of exports of cotton yarn, particularly those made from imported cotton, is that it will no longer require a certification from the excise authorities in case the cotton had been imported on or after October 1, 2010. Official recognition or certification from the Directorate General of Foreign Trade (DGFT) will be adequate for the purpose.

The respite came about a week before, in a written notice which was issued by the Ministry of Commerce. All export-oriented and textile companies involved in the production of value added speciality and technical yarn have been exempted by DGFT from the export limit, if they can prove that they had been exporting since the last two years.

The overall output of speciality and technical yarn is around 50-60 million kg annually, a minor part of the 3,600 million kg of all kinds of yarns manufactured in India. But it is important to note that, this small segment of manufactured yarn is mainly meant for export purpose.

Fibre2fashion News Desk - India

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