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DGFT invites bids for balance cotton yarn export quota

04 Feb 2011 Evaluate

The government has allowed fresh applications for exports of the balance amount of the 720-million kg cotton yarn quota for 2010-2011. However, traders will now have to register with the Director General of Foreign Trade (DGFT), instead of the textile commissioner.

The Ministry of Textiles had suspended registration after the 720 million kg cap for cotton yarn exports was not completed within the December 1 deadline. Even entities who do not produce yarn, but want to trade may also apply for the license.

Keeping cognizance of the projected number of applications, an individual may get a license of 3,000-4,000 kg. The textile associations want the cotton yarn quota to be revised from 720 million kg to 780 million kg following a 12 per cent growth in cotton yarn production that was mentioned during the last meeting with the textile commissioner.

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