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TECOYA TREND
VOL. XLI No. 263 MUMBAI, THURSDAY, DECEMBER 02, 2010 PRICE: Rs. 5.00

MoT imposes ceiling on Cotton yarn export registration discontinued

cotton yarn exports MUMBAI, DEC. 01—
The Ministry of Textiles
NEW DELHI, DEC. 01— vide Notification no: 7/32/2010-
The government today said it has imposed a limit of 720 CT II dated 01 December 2010 has
million kg on cotton yarn exports for this fiscal to help the discontinued registration of
domestic textiles industry in view of rising prices in the global cotton yarn exports. The reason
market. cited for discontinuation of
There shall be no further registration of cotton yarn registration is the high export
exports beyond 720 million kg. The Textiles Commissioner has registration crossing the 720
been instructed not to receive applications beyond this limit, million kg. mark.
Textiles Minister Dayanidhi Maran told reporters here. It may be noted here that
The total cotton yarn production is estimated at 346 the total number of contracts
million kg for 2010-11, while the domestic demand is pegged at registered with the Textile
265 million kg. Commissioners’ Office till date
So, it was decided that only 21 per cent of the total has been 21223 for 779997.66
production will be exported and rest of it will be sold in domestic tonnes worth Rs. 6284115.45
market, the minister said. lakhs. From these registrations,
457229.70 tonnes of cotton yarn
By Our Special Correspondent
tonnes valued at Rs. 1350561.92 Thailand and Indonesia were
lakhs. Taking into account the keenly watching the development
which export shipments have to
be recorded with TxC Office.)
above EARC quantities and in India today. And they are And only after 21 days period,
shipments, the total quantity delighted by India’s decision on the balance quantities will be
balance for shipments works out the cotton yarn export front. opened for exporters and new
to 264184.98 tonnes. This This good run will continue applications will be entertained.
quantity has to be shipped by for the international players Meanwhile, a press
January 15, 2010 considering 01 based on the fact Indian communiqué issued by the Textile
December 2010 as last day of government is not expected to Commissioners’ office informed
export registration and thereafter permit cotton yarn exports that the Ministry has been
45 days shipment period beyond 720 million kgs. till the monitoring the cotton yarn
permitted under the EARC. end of 2010-2011 financial i.e. production, consumption and
The immediate impact of 31st March 2011. export situation in the country
the discontinuation of cotton Meanwhile, the sources very closely. The Cotton Yarn
yarn exports will be reduction of informed that the exporters will Advisory Board (CYAB) of the
cotton yarn prices in the domestic not be able to release the total Ministry had prepared the cotton
market by atleast 10%. However, quantities allowed for exports yarn balance sheet which was as
in the international market cotton under the EARC. Therefore, the follows:

TUFS allocation has been shipped valued at Rs.

824432.07 lakh.
yarn prices will go up based on exporting units will have to renew
the fact that India, which is the their export contracts with the
Cotton yarn supply/production:
3460 mn kgs.
The Textile major exporter of cotton yarn Textile Commissioners’ Office. Cotton yarn domestic demand:
enhanced to Commissioners’ Office has issued
Export Authorization Registration
globally, will have limited In case the contracts are
quantity for exports which is not renewed, the cotton yarn
2656 mn kgs.
Cotton yarn exports: 720 mn kgs.
Rs. 4216 crores Certificate (EARC) for 20542
contracts. The total quantity
264184.98 tonnes. exporters will then have to wait
Sources informed that for another 21 working days after
Closing stock: 84 mn kgs.
Exports as % of supply: 21%
NEW DELHI, DEC. 01— under the EARC is 721414.68 cotton yarn exporters of Pakistan, 15 January 2011 (period during Continued on Page 4
The budget allocation under Technology Upgradation Fund
Scheme (TUFS) for the year 2009-10 was 3140 crore and 2010-11 is
2400 crore. . Given the committed liabilities under TUFS, an additional
allocation of 4216 crore is projected for the current year. The yearwise/
state wise release of fund is given below:
State / Union Territory 2008-09 2009-10 2010-11
Andhra Pradesh 134.81 136.51 71.02
Assam 0.05
Bihar 0.12
Chandigarh (UT) 4.69 6.63 4.14
Chhattisgarh 0.43 0.05
Dadra and Nagar Haveli (UT) 2.13 6.78 5.15
Daman and Diu (UT) 2.09 2.31 2.28
Delhi (UT) 64.89 62.76 28.31
Gujarat 511.2 338.74 250.45
Haryana 74.28 64.76 27.30
Himachal Pradesh 13.86 7.33 4.58
Jammu and Kashmir 17.12 8.50 6.13
Jharkhand 0.91 0.19
Karnataka 103.41 88.31 42.24
Kerala 15.52 24.54 16.11
Madhya Pradesh 13.15 26.91 22.93
Maharashtra 488.44 726.27 384.84
Pondicherry 0.58 0.27
Orissa 0.02 0.48
Punjab 417.16 367.29 193.36
Rajasthan 142.99 147.08 74.21
Tamil Nadu 534.36 728.75 313.87
Uttar Pradesh 71.5 99.47 36.71
Uttarakhand 1.66 8.30 2.16
West Bengal 18.1 29.31 22.87
Total 2631.38 2882.46 1509.83
The above information was given by the Minister of State for
Textiles, Ms. Panabaaka Lakshmi in a written reply in the Rajya Sabha
today to a question raised by Mr. Mohd. Ali Khan.

Welspun to invest 700 cr

in technical textiles
MUMBAI, DEC. 01—
Welspun India has
earmarked around Rs 700 crore
for foraying into technical textile,
a top company executive said.
“We are planning to invest
Rs 600-700 crore for the new arena
of technical textiles and are
waiting for the government’s
Technology Upgradation Fund
(TUF) scheme, which is expected
to be revived soon,” Welspun
India President, Corporate
Functions (Business HR,
Strategy, Projects) Updeep Singh
told PTI here.
For this purpose, the
company will set up a research
and development-based unit in
Kutch area of Gujarat.
The company is also
eyeing up to 10 per cent growth
in its sales turnover this fiscal,
he said.
“We are looking at an 8-10
per cent growth in sales turnover
in FY 11 against last year, which
was almost at USD 650 million,”
Singh said.
The textile major is looking
at an overall investment of Rs 900
crore over a period of two to three
years, including Rs 200 crore for
equipments and another Rs 600-
700 crore for venturing into
technical textiles, he said.