DGFT changes criteria to allocate cotton yarn export quota

Against a large number of applications for a "very small" quantity of cotton yarn available for exports, the government today said it has changed the criteria for allocation of quantity for shipments.

The allocation, which would now be on the basis of the past performance of exporters, would not be done today in the wake of as many as 2,500 applications from traders.

Of the 720 million kg cotton yarn export ceiling fixed for the 2010-11 season, only 60 million kg are left for exports.

"...Only those applicants with export performance in 2009 -10 will be considered for allocation in this round," DGFT said in a circular to its regional offices and members of the trade.

It said the balance amount was calculated by deducting the quantity already exported upto January 15 from the existing ceiling of 720 million kg. "This balance quantity is very small," it added.

DGFT said that when a very small residual amount is to be allocated amongst such a large number of applicants, the actual quantity that comes to the share of many applicants becomes commercially unviable because of its un-economic size.

"Therefore, an administrative decision has been taken to consider only such applicants who have recent experience on such export," it said.

It further added that since the last date of exports is March 31, the allocation would be completed as expeditiously as possible.

The cap of 720 million kg was put to help the domestic textiles industry in view of rising prices in the global market. According to industry sources, prices of cotton yarn have increased by about 85 per cent in the last nine months.