TEA has expressed shock at the DGFT (Directorate General of Foreign Trade), which allows the export of cotton yarn before the sum of 720 million kg of yarn through the prices have skyrocketed, in the 2010-11 season.
At the present time, it was withdrawn, provided that the cotton must be registered with the Directorate General of Foreign Trade (DGFT) to delivery.
TEA believes that the move would raise the prices of cotton yarn in the domestic industry, according to industry quotes in Financial Express.
Many countries have already imports cotton from India in the manufacture of clothing. They have the advantage of convenient banking interest rates, VAT rebates, as well as lower energy costs. Naturally, these threads importing countries will be able to compete with India as a cost leadership on their side.
In the end, it would be the overthrow of Indian exporters of clothing. After the customer loyalty is lost is very difficult to get it back, Financial Express mentioned TEA president, Sakthivel, said.
Several thousand people could lose jobs, he feared.
In 2009-10, the Indian garment exports earned $ 10.64 billion revenue. The industry employs 7 million people.
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