The domestic yarn spinning sector is since the last few months on a collision course with the Federal Ministry of Textiles. Ever, since the ministry imposed a cap on exports of yarn, way back in January, the spinning industry has been crying hoarse, accusing the Ministry of playing in to the hands of the textile value-added sector.
The textile sector has targeted the ministry particularly for interfering with the free-trade mechanism. They are of the opinion that, the export potential of the textile sector has been compromised due to the punitive policy of capping exports of yarn and which could prove to be harmful in the long run.
The Ministry on the other hand defends its decision by saying that the value-added sector brings in more foreign exchange as well as provides many jobs in the industrial sector, due to which it was necessary to control rising yarn prices, by putting controls, like putting restrictions on volumes of exports of yarn.
Initially the Ministry had announced a cap of 50,000 tons per month In January, which was later on lowered to 35,000 tons per month in March, after it was noticed that exports in February had surpassed the cap of 50,000 tons by a wide margin and also had not helped in control the rising prices of yarn in the country.
Fibre2fashion News Desk - India