Concerned over volatility in cotton yarn prices in the domestic market, the Apparel Export Promotion Council (AEPC) has asked the government to restrict its exports and allow duty free imports .
AEPC Chairman A Sakthivel in a letter to Commerce, Industry and Textiles Minister Anand Sharma said the steep rise in cotton yarn prices is affecting various segments of the industry.
“Now, the situation has become alarming and shocking to value—added garment export sector. It is an alarming situation, the garment exporting community is looking upon you for your immediate intervention so that prices can be brought down,” the letter stated.
In the past few months, the apparel sector has experienced volatility in price of cotton yarn. While cotton prices rose up to 5 per cent in the last two months, yarn prices have increased over 15 per cent in the same period, it said.
AEPC has asked the government not to permit cotton yarn exports, except 60s count and above, and the facility of duty drawback on cotton yarn exports be stopped forthwith.
Besides, it said, the government should allow duty free imports of cotton yarn which will help in stabilising the raw—material prices.
“Whenever there is a rise in demand in importing countries for the natural fibre, there is not only an increase in cotton prices in domestic market but also cotton yarn rates are hiked abnormally,” the letter stated.
It further said no parity exists between cotton and cotton yarn prices.