The government today removed restrictions on exports of cotton yarn.
As against the previous policy of exports under lincence, cotton yarn exports are now allowed after registering with the Directorate General of Foreign Trade (DGFT), a government notification said.
In the backdrop of a sharp rise in cotton yarn prices hitting garment manufacturers, the government in last December had "restricted" its exports by putting the shipments under the licence category.
The government had also imposed a cap on yarn shipments at 720 million kilogram for 2010-11 to help ease rising domestic cotton prices.
Allowing free exports now, the DGFT notification said, "Clearance of cotton yarn consignments shall be given by Customs after verifying that the contracts have been registered."
Commenting on the move, the Confederation of Indian Textile Industry (CITI) said that in the domestic market there was no demand for cotton yarn.
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