Disappointed at the removal of cotton yarn exports from the negative list and putting it under open general licence (OGL) with effect from April 1, garment exporters said on Tuesday that allowing unchecked exports of yarn would result in price increases of the item and scarcity in the domestic market.

Garment Exporters Association (GEA), in a representation to the Commerce and Industry Minister, Mr Anand Sharma, has asked the Government to put cotton yarn back on the negative list. The GEA also asked the Government to maintain the export ceiling of cotton yarn at 720 million kg for this year also.

Stating that the garments exporting community has been going through serious crisis due to non-availability of adequate supply of cotton yarn at reasonable prices, the GEA requested the Government to suspend export of cotton yarn citing excessive rise in the cotton yarn prices.

“We shall also request you to allow export of cotton only in a calibrated manner to ensure adequate and uninterrupted supply of cotton yarn at reasonable prices for the domestic industry,” Mr Rakesh Vaid, President, GEA, said.

Yarn exports constitute less than 10 per cent of overall textiles exports, but have a potential to derail exports of value-added and job-creating products like garments and made-ups, he said.

“The cotton yarn exports from India face no international competition, as most yarn producing nations preserve their domestic yarn supply for its industry. On the other hand garment exports from India face stiff international competition. Also being on the top of the value chain, it attracts highest infrastructure deficiency and transaction cost,” the GEA said.

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