Ministry of Textile's (MINTEX) decision of further extending the ceiling on export of all type of yarn and capping it at 35 million kg per month, while exempting value-added yarn fetching a price higher than or equal to $3.5 per kg, has been praised by the value-added textile export sector.
The move of MINTEX would bring about some relief for the value added textile export sector, an industry spokesperson divulged. He also stated that the allocation of about Rs five billion that is given to the spinning sector against LTF should be diverted to the value-added sector, which fetches considerable foreign exchange in the country's economy.
In order to bring to an end, hoarding of large volumes of cotton by some of the spinners, it was recommended that MINTEX needs to act firmly. Also legal provisions should be made to the effect that spinners should not be allowed to accumulate cotton, in excess of their three months requirements.
Fibre2fashion News Desk - India