8/8/2019 Cotton Yarn export registration discontinued

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Cotton yarn export registration discontinuedBy 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 andshipments, 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 themajor 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 aredelighted by Indias 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 theTextile 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

be recorded with TxC Offic

And only after 21 days perithe balance quantities will

opened for exporters and n

applications will be entertaine

Meanwhile, a pre

communiqu issued by the Tex

Commissioners office inform

that the Ministry has be

monitoring the cotton ya

production, consumption a

export situation in the coun

very closely. The Cotton Y

Advisory Board (CYAB) of

Ministry had prepared the cott

yarn balance sheet which was

follows:

Cotton yarn supply/productio

3460 mn kgs.Cotton yarn domestic deman

2656 mn kgs.

Cotton yarn exports: 720 mn k

Closing stock: 84 mn kgs.

Exports as % of supply:21%Continued on Page 4