No More Export Registration on Cotton Yarn after 720 mn Kgs Ceiling

[Ref: Press Release regarding Govt. Decision on Cotton Yarn export registration issued by MoT vide OM No. 7/32/2010-CT-II dtd 01.12.2010]

Ministry of Textiles has been monitoring the cotton yarn production / consumption I export situation in the country very closely. The Cotton Yarn Advisory Board (CYAB) has been constituted in September 2010 to formulate the Cotton Yarn Balance sheet for the country. Following two meetings of the CYAB on October 1st and 29th 2010, the cotton yarn balance sheet formulated indicates the productionIconsumption/export figures as follows:

Cotton yarn supply / production: 3460 million kgs

Cotton yarn domestic demand: 2656 million kgs

Cotton yarn exports: 720 million kgs

Closing stock: 84 million kgs

Export as % of supply: 21%

Yarn exports at 720 million kgs for the year 2010-11 would be the highest ever export performance achieved by the Indian spinning industry in comparison to the 589 million kgs in 2009-10 and 556 million kgs in 2008 09.

In the backdrop of the increased domestic demand and to the address the price volatility the Government has decided that there shall be no further registration of the cotton yarn exports beyond 720 million kgs. All applications in pipeline above the export registration of 720 million kgs shall not be considered by the Textiles Commissioner, Mumbai.

It is expected that this decision will provide adequate domestic availability of cotton yarn and ensure price stability which will benefit millions of Handloom weavers, Knitwear industry, Garment manufactures and Power loom weavers.