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The Government has decided to allow exports of the balance amount of the 720 million kg of cotton yarn quota for 2010-11.
“The export of cotton yarn was allowed under licence. Now, issue of export licences for cotton yarn will be subject to a limit of 720 million kg during the fiscal year 2010-11 (that is up to March 31, 2011),” the Directorate General of Foreign Trade said in a notification.
Mr A. Sakthivel, former FIEO President and Chairman of Poppys Group, said the, “left out quantity and short-shipment of cotton yarn would be around 50 million kg”, adding that the Government move will enable this to be shipped out.
Mr Ramu S. Deora, President, Federation of Indian Export Organisations, said this move will provide respite to the cotton yarn exporters who were waiting for the same since long and have accumulated large stocks in anticipation of exports.
Mr Deora said he expects that allocation of quantities to the applicant exporters will be expedited and scrutiny of the Letter of Credit or Foreign Inward Remittance Certificate, if required, should be done on priority by the DGFT giving adequate time to exporters to make the shipment of the requisite quantities.
He added that export of cotton yarn will assist in increasing exports in 2010-11.
In order to avoid the situation in the future, Mr Sakthivel said, in the next fiscal the Government should not allow exports of cotton yarn of up to 40s count, as it is used by the domestic market.
He added that even if it is allowed, it should be subject to a ceiling and be calibrated month-wise.
According to the new norms, exporters are required to register with the DGFT, instead of the Textile Commissioner.
The Textiles Ministry had earlier suspended registration of cotton yarn exports after the 720 million kg ceiling was not achieved by the earlier deadline of December 1, 2010.
The textile industry (spinning sector) had pitched for increasing the cotton yarn quota from 720 million kg to around 780 million kg citing a 12 per cent jump in production of the item.
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