Mills Welcome Freeing Of Yarn Export.

Spinning mills welcomed the removal of the restriction on yarn exports and said the decision would improve offtake in the market. Garment makers, however, said the move would trigger price rise and lead to non-availability of yarn in local market.

"This would bring some relief to mills. There would not be any huge change in yarn and cotton prices, but yarn offtake would improve," said D K Nair, secretarygeneral, Confederation of Indian Textile Industry.

With the installed spinning capacity substantially going up, yarn production would be more than sufficient to meet the local demand even after taking into account all the exports, he said. Garment exporters don't share this perception. The decision to bring yarn export under the free category would directly impact the downstream sectors and would trigger price increase besides leading to non-availability of yarn in the domestic market, said A Sakthivel, president, Tirupur Exporters' Association.

Yarn exports should be calibrated monthwise and quarterwise and the maximum quantity of exports should be fixed at 720 million kg like last fiscal, he said in a letter to the commerce minister.

Source : timesofindia.indiatimes.com