Ceilings raised for cotton yarn exports

By Our Special Correspondent

NEW DELHI, JAN. 4. The Ministry of Textile today approved raising of ceilings for export of cotton yarns for the calendar year 2000. The new ceilings on export of cotton yarn of 40s and below counts have been fixed at 500 million kg and that for hank yarn of below 60s at 20 million kg.

The decision is aimed at providing further boost to the cotton yarn exports. It has been prompted by the rising trend in exports of cotton yarn. The necessary notification raising the ceiling will be issued by the Ministry of Commerce and Industry soon.

The ceiling for calendar year 1999 pegged at 200 million kg in January was subsequently revised to 300 million kg in June.

At the same time, the Textile Ministry has opted for retention of major features its policy for export of cotton yarn as was being implemented in 1999. The 100 per cent export oriented units and export promotion zone units will continue to enjoy exemption from the ceiling for export of cotton yarn of 40s and below counts without any count or domestic cotton use restrictions. However, these exports would be subject to the over all quantitative ceiling of 500 million kg.

Also in the exempt category will be exports made under the advance licensing scheme or on the basis of cotton imported under the open general licence (OGL) or by the export promotion capital goods units. In order to reap the benefits of the exemption, these units will have to meet their annualised export obligations.

It may be recalled that the Ministry had received representations from cotton manufacturers asking it to raise the ceiling. The rising trends in the exports of cotton yarn in 1999 further enthused the Government to revise the ceiling on exports of cotton yarn.

According to the Ministry, the ceiling has been revised in such a way that it would ensure adequate supplies of cotton yarn to the decentralised handloom and powerloom sectors at reasonable prices, besides maintaining continuity in cotton yarn exports without affecting competitiveness of higher value added cotton fabrics, made-ups and garment exports.

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Section  : Business
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