The Madurai Textile Exporters and Manufacturers’ Association has requested the Prime Minister Manmohan Singh to make an announcement that cotton waste would not to exported. Such an announcement would prevent speculation of prices and also safeguard the domestic textile sector.
In a memorandum sent to the Prime Minster, association chairman M. Britto said that the price of Open End (OE) yarn were increasing following speculations that export of cotton wastes would be permitted soon.
The OE yarn is being mainly used by handloom sector in and around Madurai, Karur and the small power loom sector at Tirupur, Erode and Rajapalayam. Any increase in OE yarn prices would affect all these shareholders and result in their products becoming uncompetitive to companies in Pakistan, Bangladesh and China.
Further, he said, the Government in these countries were supporting the sector by favourably pegging the exchange rates and offering various concessions. However, the Indian companies were faced with a strong Rupee, he said, adding that various export incentives were also being withdrawn by the Government.
Mr. Britto said that even if export of cotton waste were to be allowed, an export duty must be imposed to safeguard the domestic textile sector as these were the main raw materials making OE yarn used mainly by handloom and small power loom sectors.
