AEPC urges govt to place restrictions on cotton yarn exports

The Apparel Export Promotion Council (AEPC) on Saturday urged the federal government to impose restrictions on exports of cotton yarn with a purpose to curb costs and improve provide for home producers.
AEPC Chairman A Sakthivel mentioned regardless of a number of efforts by the federal government to scale back the value of cotton yarn, it has constantly elevated within the final 4 months and was affecting the complete worth chain.
“We request immediate intervention to increase the supply of yarn to domestic manufacturers. We suggest that quantitative restrictions should be imposed on exports of cotton yarn, specifically on cotton yarn of 26 counts and above,” he mentioned.
Sakthivel additional mentioned the Cotton Corporation of India (CCI) has lowered the value of cotton for small mill homeowners however this didn’t end in discount of cotton yarn costs.
The charge of improve in yarn costs far exceeds that of cotton costs. The steep improve in costs and unpredictability in availability of yarn implies that garment exporters can’t honour commitments they made to their prospects.

“This has also affected handloom and powerloom weavers badly. Looms have stopped production. Due to this, the domestic industry has also got affected adversely,” he added.
The AEPC chairman mentioned the sector could be hit onerous if yarn is exported at the price of home and export-oriented manufacturing trade.
“We also suggest that export duty should be levied on exports of cotton yarn. This will result in a sharp decline in domestic yarn prices and an increase in value addition and employment in the country. This will also help in increasing garment exports. And, it will result in only normal profits accruing to yarn spinners, not the super normal profit owing to the profiteering currently happening,” Sakthivel mentioned.