Government and trade bodies have become active with regard to reducing the skyrocketing yarn price, and in near future, rates may come down.
Apparel Resources got to know that MoT has been requested by some industry representatives to suspend the Remission of Duties and Taxes on Export Products (RoDTEP) benefit for cotton and yarn for three months.
A source representing the textile mills’ association said that in order to bring stability in cotton and yarn prices, the Government is under pressure to calibrate cotton/yarn export or withdraw RoDTEP benefit for cotton and yarn, impose an export duty on cotton/yarn and advised all the associations to sensitise the cotton trade and spinning sector to bring stability.
A detailed report has been submitted with all facts and figures justifying the yarn price.
The source further added, “We could get the cotton yarn and fabric included under RoDTEP after making continuous efforts for several years. We stood united when a similar situation arose during the beginning of 2021. You are aware that even a 5 per cent diversion of export yarn into the domestic market will have a serious impact.”
Reportedly, as the domestic cotton price started declining marginally, Gujarat spinning mills reduced the yarn price by Rs. 10 to 15 per kg, which has been communicated to the MoT, in addition to urging the Government not to initiate any action till mid-December 2021.
“We have advised all the stakeholders to avoid panic buying and manage with minimal stock. We hope the price might soften in the coming days once the cotton arrival per day reaches 2 lakh bales per day,” said another official of a textile trade body.