Raise cotton yarn exports cap to 1280 mn kgs: NITMA

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Namrata Kath Hazarika | 02 Apr, 2011
Ceiling for cotton yarn exports needs to be raised to at least 1280 million kgs for the FY 2011-12, said The Northern Textile Mills' Association (NITMA) former President, Ashish Bagrodia, who was recently succeeded by Mukund Choudhary as the new President.

In his presentation to the Textile Commissioner, Bagrodia said, "A minimum export of 1280 million kgs should be allowed during the year 2011-12 to prevent the spinning mills going into the red and closing down one after the other. This will also help the industry to strive to achieve the country's larger goal of doubling its exports by 2015."

The government had imposed a quantitative ceiling for cotton yarn exports at 720 million kgs for the FY 2010-11.

He mentioned during their Annual General Meeting (AGM), in New Delhi on Friday that the country will add on 3.5 million spindles and 50 lakh rotors which will lead to an additional production of about 500 million kgs in 2011-12 and a total of 4000 million kgs for 2011-12 based on the average count as per the Textile Commissioner data whereas in the finalized balance sheet this has been taken much lower at 3931 million kgs.

During December 2010, the Textile Commissioner had added 4 million spindles to the installed capacity in India. In addition to these spindles there was continuous growth of 13 percent in cotton yarn production from April 2010 - January 2011, as per as the official data of the Textile Commissioner.

Bagrodia pointed out that according to the above mentioned facts the minimum production of cotton yarn during 2010-11 should have been 3540 million kgs, an increase of 15 percent over the last fiscal whereas the Cotton Yarn Advisory Board (CYAB) has finalized the figure at 3510 million kgs.

At the same time on the consumption side, he said, "We are quite surprised that a consumption increase of 30 percent (1205 million kgs from 928 million kgs) has been taken in this sector over the last one year."

"There is absolutely no justification for this increase when the Textile Commissioner office data itself shows an increase of only 14 percent (928 million kgs from 814 million kgs) in 2010-11. Also an increase of 30 percent consumption in one year is unprecedented and in order to increase consumption to this level, machines and manpower are required. There is no evidence from any quarter that so many powerlooms are being installed," he said.

"The fact of the matter is that consumption of cotton yarn in this sector may not even grow in 2011-12 at the rate as in 2010-11 since many powerlooms have shifted to synthetic spun and filament yarns. It is clear that this consumption figure is just an arbitrary figure," Bagrodia added.