The Noida Apparel Export Cluster (NAEC) has sought a complete ban on the export of Indian cotton and yarn to increase production in the domestic apparel industry, so that the finished products may be exported internationally to fetch more revenue.
The cluster also said a ban on export of cotton and yarn will ensure more availability of raw material for the apparel industry, which has been in the doldrums for the past six months on account of Covid-19 induced slowdown, and enable it to compete in the global export market.
Lalit Thukral, president of Noida Apparel Export Cluster and convener of ready-made garments (RMG), Uttar Pradesh Export Promotion Council, said the industry is already reeling under huge losses caused by the pandemic and the large-scale export of cotton and yarn has come as a double blow. It may be noted here that Noida’s share in apparel export in the last financial year was USD 3.5 billion.
According to the ministry of textiles figures, the country exported nearly 12 million bales of cotton and yarn in the past two financial years. Data showed that India exported around 5.5 million bales of cotton and yarn to Bangladesh, Vietnam and China last fiscal. Of this, 2.197 million bales (about 275 million kilograms) were to China alone.
While the export of cotton and yarn generates a revenue of around USD 75 billion every year, Thukral said if the export is banned and more raw material is made available to the apparel industry, then the export of ready-made garments will generate a yearly revenue of about USD 40 billion.
He further said the export was eating into the availability of raw material for the domestic ready-made garments industry – only half of its yearly requisition of 12 million bales is being met currently.
“The government has set us a target of generating USD 400 billion in merchandise export, i.e export of different varieties of readymade garments. In order to meet this, we have no option but to request a ban on the export of cotton and yarns,” he said.
