Madurai Textile Exporters and Manufacturers' Association has requested Prime Minister Manmohan Singh to make an announcement that cotton waste would not be exported. Such an announcement would prevent speculation of prices and safeguard the domestic textile sector.

In a memorandum sent to the Prime Minister, association chairman M. Britto said that the price of open end (OE) yarn was 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 price would affect all these units and result in their products becoming uncompetitive in Pakistan, Bangladesh and China.

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.