Exportable cotton yarn surplus at 7.2 lakh tonne

COIMBATORE: The Cotton Yarn Advisory Board has fixed India’s exportable surplus at 7.2 lakh tonne in a meeting in Mumbai on Friday. Out of the 7.2 lakh tonne exportable surplus only 5.3 lakh tonne have been registered so far and 3.9 lakh tonne have been shipped in the past seven months, data available with the office of the textile commissioner shows.

Following the unprecedented rise in cotton prices and the subsequent increase in yarn prices, garments exporters have been demanding a ban on yarn exports till domestic needs are met. “Only 20% of the total cotton yarn is being exported,” managing director of GTN Textiles, BK Patodia said, adding that industry’s needs are being met.

The board has made it clear in the meeting that yarn production is increasing in the country and approximately 3 lakh spindles are added every month. The current cotton yarn production estimates for 2010-11 stands at 33.7 lakh tonne.

“I don’t see any reason in call for cotton yarn ban. It is just that the garment exporters are hoping for prices to come down if the exports are stopped,” said VS Velayutham, ex-chairman of cotton textile export promotion council and chairman of Tirunelveli-based Gomathi Mills. Yarn prices have increased by Rs 21 per kg across counts in the past one month and Mr Velayutham says that it will soon be at par with polyester yarn costs.