Indian government lifts restrictions on cotton yarn exports
The Indian government has decided to lift restrictions on exports of cotton yarn, in a move that means overseas shipments will no longer need government permission.
The country imposed a ceiling of 720 million kilograms on cotton yarn exports in December 2010 in an attempt to meet growing domestic demand and to halt soaring prices.
The lifting of restrictions on yarn exports, which came into effect on Friday, 1 April, 2011 has been welcomed by the EU Textile and Clothing Industry.
Describing it as “a positive step taken by India,” Alberto Paccanelli, president of EURATEX, the European Textile and Apparel Confederation said: “This decision by the Indian authorities is a positive sign to the market, and we hope it will contribute to alleviate the pressure and speculation that we have been witnessing in these last months”.
EURATEX said the Indian quotas had contributed to rising prices, lack of availability and “severe disturbances” in the EU textile and clothing supply chain.
“We hope that in the near future the restrictions on exports of cotton fibre will also be lifted,” Mr Paccanelli added.
