Northern India Textile Mills Association (NITMA), President, Shri Ashish Bagrodia said that the Association had appealed to all its member mills and accordingly the member mills have agreed to reduce the cotton yarn prices by Rs.5/- per kg with effect from 1st May 2010 to extend support to the downstream sectors. Shri Bagrodia appealed to member units that such a reduction will help us to build a collaborative approach on the part of all the segments of our textile and clothing industry.
Members of NITMA have also agreed to extend their fullest support to the handloom sector by supplying adequate quantity of hank yarn and to ensure availability of cotton yarn to the other domestic user industry. Shri Bagrodia has appealed to the Union Textile Minister to drop the proposal of withdrawing the duty drawback for cotton yarn.
The Government had already withdrawn the DEPB (Duty Entitlement Pass Book) benefit of 7.67% and the removal of drawback would make the Indian yarn very expensive in the international market and the spinning industry would lose their customers who have been nurtured in the last 20 yrs after liberalization. "The Indian spinning sector could achieve a 15% share in the global yarn trade owing to the concerted efforts made over decades. Any further negative steps against this sector like removal of duty drawback or levying export duty on cotton yarn or any other control on cotton yarn exports would become counter productive. The competing countries like China, Pakistan, Thailand, Indonesia, Bangladesh etc., would grab the opportunities." he said.
Northern India Textile Mills Association (NITMA)