The domestic textile industry has urged the government to bring in a raw material security system for the industry by determining the cotton exportable surplus and permitting exports only in installments.
Garment workers of Sri Lanka fear losing their jobs as garment factory owners are finding ways to reduce costs on account of loss of GSP Plus benefits from European Union along with which they also expect lose of market share.
The Centre may remove restrictions on export of surplus cotton yarn produced in the country that is over and above the quantity required by the domestic textile industry, a senior government official has said.
Continuous rain in north India is forcing Punjab farmers to harvest cotton crop earlier than usual period. It could also push up raw material costs for textile makers and exporters if it hurts standing crop in the region.
The government has taken steps to reduce exports transaction cost by at least 40 percent within a few months and may extend stimulus package to sectors which are not covered in the policy supplement announcement.