FW: Cotton yarn export registration discontinued

 

 

 

Cotton yarn export registration discontinued

By Our Special Correspondent
MUMBAI, DEC. 01—
The Ministry of Textiles vide Notification no: 7/32/2010- CT II dated 01 December 2010 has discontinued registration of cotton yarn exports. The reason cited for discontinuation of registration is the high export registration crossing the 720 million kg. mark. It may be noted here that the total number of contracts registered with the Textile Commissioners’ Office till date has been 21223 for 779997.66 tonnes worth Rs. 6284115.45 lakhs. From these registrations, 457229.70 tonnes of cotton yarn has been shipped valued at Rs. 824432.07 lakh. The Textile Commissioners’ Office has issued Export Authorization Registration Certificate (EARC) for 20542 contracts. The total quantity under the EARC is 721414.68 tonnes valued at Rs. 1350561.92 lakhs. Taking into account the above EARC quantities and shipments, the total quantity balance for shipments works out to 264184.98 tonnes. This quantity has to be shipped by January 15, 2010 considering 01 December 2010 as last day of export registration and thereafter 45 days shipment period permitted under the EARC. The immediate impact of the discontinuation of cotton yarn exports will be reduction of cotton yarn prices in the domestic market by atleast 10%. However, in the international market cotton yarn prices will go up based on the fact that India, which is the major exporter of cotton yarn globally, will have limited quantity for exports which is 264184.98 tonnes. Sources informed that cotton yarn exporters of Pakistan, Thailand and Indonesia were keenly watching the development in India today. And they are delighted by India’s decision on the cotton yarn export front. This good run will continue for the international players based on the fact Indian government is not expected to permit cotton yarn exports beyond 720 million kgs. till the end of 2010-2011 financial i.e. 31st March 2011. Meanwhile, the sources informed that the exporters will not be able to release the total quantities allowed for exports under the EARC. Therefore, the exporting units will have to renew their export contracts with the Textile Commissioners’ Office. In case the contracts are not renewed, the cotton yarn exporters will then have to wait for another 21 working days after 15 January 2011 (period during which export shipments have to be recorded with TxC Office.) And only after 21 days period, the balance quantities will be opened for exporters and new applications will be entertained. Meanwhile, a press communiqué issued by the Textile Commissioners’ office informed that the Ministry has been monitoring the cotton yarn production, consumption and export situation in the country very closely. The Cotton Yarn Advisory Board (CYAB) of the Ministry had prepared the cotton yarn balance sheet which was as follows:
Cotton yarn supply/production:
3460 mn kgs.
Cotton yarn domestic demand:
2656 mn kgs.
Cotton yarn exports: 720 mn kgs.
Closing stock: 84 mn kgs.
Exports as % of supply: 21%

The communiqué noted that yarn exports at 720 million kgs for the year 2010-11 would be 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 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 Textile Commissioners’ Office. In 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 manufacturers and powerloom weavers.

MoT imposes ceiling on cotton yarn exports

NEW DELHI, DEC. 01—
The government today said it has imposed a limit of 720 million 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 720 million 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 million kg for 2010-11, while the domestic demand is pegged at 265 million 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.