Govt invites bids for cotton yarn left-over export quota

The government has invited applications from traders for granting permission to export cotton yarn within an overall quota of 720 million kg fixed for the 2010-11 season.   

The applications for seeking export entitlement of a fixed quantity being received by the Directorate General of Foreign Trade (DGFT) from today can be submitted till close of working hours on February 7, DGFT said.

It said export shipments have to be made before the end of the season ie March 31, 2011. 

The bids are being received for the remaining amount of the overall ceiling of 720 million kg, it said. While it did not specify the balance quantity available for exports, about 60 million kg cotton yarn is still available for shipments. 

In December last year, the Textile Ministry had put a cap on exports in the current financial year to help the apparel industry in view of rising cotton yarn prices in the global market.   

The total domestic cotton yarn production is estimated at 3460 million kg for 2010-11, while the domestic demand is pegged at 2650 million kg. 

According to industry sources, the prices of cotton yarn have increased by about 85 per cent during April-December 2010-11.

The textiles industry has been clamouring for imposing restrictions on exports of cotton and cotton yarn, arguing that high prices are making their operations unviable.

Earlier, the government had placed a ceiling of 5.5 million bales (170 kg each) on raw cotton exports in the current crop year, which runs from October to September.