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The Tirupur Exporters' Association (TEA) has sought a cap on cotton yarn exports for 2011-12.
It has also suggested that the export of cotton yarn should be calibrated both month-wise and yarn count-wise. In a statement, Mr A. Sakthivel, President, TEA, said the cap should be set at 600 million kg for 2011-12 and permission for exports should be granted from January to December since the cotton season commenced only from October.
He said that unlimited export of cotton yarn wrought havoc on the downstream sectors, particularly on the knitwear garment exporting units. Moreover exports benefited only countries that were in direct competition with India in knitwear garment exports.
Mr Sakthivel argued that to prevent any “abnormal increase” in cotton yarn prices in the domestic market and to ensure the availability of cotton yarn to the downstream sectors, it was imperative that month-wise calibration was introduced and there should be count wise export cap also. He favoured a ban on export of yarn in the in the counts ranging from 1s to 40s and “if it was required, only 20 per cent of decided quantity has to be permitted in this count range”.
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