The Noida Apparel Export Cluster (NAEC) has sought a complete ban on importing Indian cotton and yarn to increase production in the domestic apparel industry.
The finished products may be exported internationally to fetch more revenue. They believe that a ban on the export of cotton and yarn will ensure more raw material availability for the apparel industry, which has been in the doldrums for the past six months on account of the Covid-19 induced slowdown to compete in the global export market.
India exported around 50% cotton and yarn to China in the last fiscal.
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. Of this, 2.197 million bales (about 275 million kilograms) were to China alone. Suppose the export is banned and more raw material is made available to the apparel industry. In that case, the export of readymade garments will generate yearly revenue of about USD 40 billion.
Mr. Lalit Thukral, president of Noida Apparel Export Cluster and convener of readymade garments (RMG), said, “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.
Incidentally, 72 million of these workers are women, mostly from rural areas.
The apparel industry also plays a pivotal role in foreign exchange earnings. brought in foreign exchange earnings amounting to USD 12.28 0billion during fiscal 2020-21.
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