October 20, 2021

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AEPC urges government to put restrictions on cotton yarn exports, Retail News, ET Retail

NEW DELHI: The Clothing Export Promotion Council (AEPC) on Saturday urged the governing administration to impose limits on exports of cotton yarn in buy to control selling prices and maximize offer for domestic brands.

AEPC chairman A Sakthivel mentioned irrespective of numerous endeavours by the governing administration to reduce the price tag of cotton yarn, it has consistently greater in the very last four months and was impacting the entire worth chain.

“We ask for quick intervention to maximize the offer of yarn to domestic brands. We suggest that quantitative limits ought to be imposed on exports of cotton yarn, precisely on cotton yarn of 26 counts and earlier mentioned,” he mentioned.

Sakthivel additional mentioned the Cotton Company of India (CCI) has lessened the price tag of cotton for little mill homeowners but this did not result in reduction of cotton yarn selling prices.

“The amount of maximize in yarn selling prices significantly exceeds that of cotton selling prices. The steep maximize in selling prices and unpredictability in availability of yarn suggests that garment exporters can not honour commitments they produced to their consumers.

“This has also afflicted handloom and powerloom weavers poorly. Looms have stopped manufacturing. Because of to this, the domestic industry has also got afflicted adversely,” he added.

The AEPC chairman mentioned the sector would be strike difficult if yarn is exported at the cost of domestic and export-oriented producing industry.

“We also suggest that export responsibility ought to be levied on exports of cotton yarn. This will result in a sharp decrease in domestic yarn selling prices and an maximize in worth addition and employment in the place.

“This will also enable in increasing garment exports. And, it will result in only usual income accruing to yarn spinners, not the super usual income owing to the profiteering at present going on,” Sakthivel mentioned.