Punjab traders unhappy with new export rules for yarn.

The latest instructions by the Central government to get cotton yarn exports registered have left exporters baffled.

Earlier, only cotton bales had to be registered for export.

The 7.67 per cent duty entitlement passbook (DEPB) benefit on cotton yarn exports has also been withdrawn. Northern India Textile Mills Association (NITMA) president Ashish Bagrodia said, “The recent announcement by the government and are likely to be notified soon. These are prohibitive orders to discourage cotton yarn export and registration will only lead to delays and corruption. The withdrawal of DEPB will reduce the incentives for traders and hence the exports will fall drastically.”

Over 45 big spinning mills located in the state will be affected directly and hundreds of small units will feel the heat in Fazilka, Bhatinda and surrounding areas. The government, however, claims that traders were focusing more on export and the regulations will put a check so that cotton yarn is available in the domestic market.

Source : Indian Express