Tirupur Exportersí Association (TEA) has urged the union textiles minister, Dayanidhi Maran to immediately ban on cotton yarn export, as the spinning mills have rejected the appeals to bring down prices by Rs 10.
According to TEA president, A Saktivel, the association had sent out letters to SIMA and TASMA to come forward to reduce the yarn prices for all the counts and to maintain the reduced prices for a period of three months. TEA asked the associations to bring down price to Rs 195 per kg as against the existing price level of Rs 205 per kg and for other counts the reduction should be made proportionately.
However, other South-based millers associationí have expressed that it is not possible to make any attempt on fixing of the yarn price due to rise in cotton prices. Most of the mills have stopped supplying yarn by citing non-availability of cotton in the market. If yarn is not available, then, all the exporters would be forced to shut shop, he said.
ďOur concern is that as we have booked our orders earlier, we are committed to meet out the delivery schedule failing which not only the orders will be canceled, but also, we will be ultimately losing our buyers, foreverĒ, he explained.
Considering the gravity of the situation, TEA has urged the minister to impress upon the government to impose ban on cotton yarn exports immediately till the yarn supply is restored and the market becomes normal.
The ban of cotton yarn exports may be lifted once the yarn supply restored with conditions like only 10% of cotton yarn production should be exported on count wise and 15% ad valorem export duty should be imposed on cotton yarn, Saktivel said adding cotton yarn export should also be calibrated and should not be permitted above 55 lakh bales.