New Delhi, Dec 1 (PTI)
The government today said it has imposed a limit of 72 crore kg on cotton yarn exports for this fiscal to help the domestic textiles industry in view of rising prices in the global market.
"There shall be no further registration of cotton yarn exports beyond 72 crore kg. The Textiles Commissioner has been instructed not to receive applications beyond this limit,"Textiles Minister Dayanidhi Maran told reporters here.
The total cotton yarn production is estimated at 346 crore kg for 2010-11, while the domestic demand is pegged at 265 crore kg.
"So, it was decided that only 21 per cent of the total production will be exported and rest of it will be sold in domestic market,"the minister said.
Earlier, the government had placed a ceiling of 55 lakh bales (170 kg each) on raw cotton exports in the current crop year, which runs from October to September.
The textiles industry has been clamouring for imposing restrictions on exports of cotton and cotton yarn, arguing that high prices are making their operations unviable.
According to industry sources, the prices of cotton yarn have increased by about 85 per cent in the last nine months."The step will be a big help for the textiles industry,"said A Sakthivel, who heads the Tirupur Exporters Association.
Sakthivel, who also heads exporters apex body Federation of Indian Export Organisations (FIEO) said the industry was badly hit due to rising cotton yarn prices and needed the government's intervention.
The apparel units particularly in Tirupur in Tamil Nadu and other production centres went on a day long strike in November, demanding ban on exports.
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