Curbs on Export of Cotton, Yarn.

NEW DELHI: After the onion fiasco, the government does not seem to be taking any chances with cotton and cotton yarn, which provide livelihood to over 6 crore farmers and industry workers.

On Wednesday, it restricted the export of cotton yarn in the backdrop of sharp rise in prices, which has hit garment manufacturers. Exports have been restricted and prior registration would be required now, commerce secretary Rahul Khullar said at a press conference. Though the maximum permissible import has been left at 72 crore kg for the moment, the limit will be reviewed next month.

In case of cotton, where export of 55 lakh bales was permitted earlier and only 25 lakh had been exported, norms for issuing fresh registration certificates are expected to be issued in a week. Traders who had received the certificates earlier from the textiles commissioner would now have to queue up before the Directorate General of Foreign Trade to get fresh permission.

The curbs on yarn exports came due to a 85% rise in global prices over the last nine months. Khullar said there was a tug of war between different segments of the textile industry — yarn makers and fabric and garment manufacturers. While the yarn makers decry the restrictions, the move has come in as a relief to garment makers.

Source : timesofindia.indiatimes.com