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Voices get shriller over ban on cotton yarn exports
Apr '11
The government has been urged to ban coarse cotton yarn exports.

Besides this, the value-added textile sector even proposed for registration of all the spinning mills with the Ministry of Textile Industry so as to avert any shortage of cotton and yarn in future. The proposal was placed before the Textile Ministry.

The value added sector demanded formulation of a mechanism under which all the spinners should register with the Ministry, and only the registered mills should be permitted to trade in cotton and yarn.

In this manner only the registered spinners and ginners would be able to trade cotton and yarn and all the trade transactions would be documented. This would even help the Ministry to have accurate trade data's of cotton and yarn.

Currently, the Ministry has no such statistics with it, but once the exact details regarding the commodity purchased by the value added textile industry and the domestic producers and export data are documented, this information can readily be made available.

The value added sector stated that, India's textile exports constitute 12 percent of its overall exports, and even though the country has 4.7 million extra bales of cotton, it restricted and even banned cotton exports, in times of scarcity of the commodity in the local market.

Contrarily, Pakistan's textile exports account for 54 percent of its overall exports. As against its actual requirement of 14 million bales, Pakistan's overall cotton production for 2009-10 was 12.2 million bales, but in spite of that no measures were introduced to regulate or check cotton exports, which is a key input for textile industry.

China on an average exports $161 billion worth of textiles each year, which constitutes 13 percent of its overall exports. The overall cotton output of China is 40.9 billion bales, but still it too restricts cotton and yarn exports in order to safeguard the domestic industry, they added.

Further, the value added sector contended that, uncontrolled exports of cotton yarn, whether fine or coarse and hoarding is also one of the main reasons behind fake scarcity of cotton yarn in domestic markets.

Editorial note –
While free trade is always appreciated, the Pakistani government should also consider the interests of its domestic textile and value-added sector and look in to the demands sympathetically.

Fibre2fashion News Desk - India

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