The 100-per cent export-oriented units (EOUs) have already been given such a permission by the textile ministry.

In a letter to textile secretary Shyamal Ghosh, the association has also asked for the concession to be made permanent for both, the EOUs and the EPCG units instead of pegging it to December 31, 1999 as had been earlier done in the case of the EOUs.

Before local cotton-use restrictions were removed from EOUs, both EPCG units as well as EOUs were compelled to import cotton if the thickness of the yarn exported was below 40 counts.

Only units manufacturing yarn above 40 counts were allowed to use local cotton.

According to NITMA secretary, KJS Ahluwalia, imported cotton was of superior variety and there was no logic in prescribing it for inferior variety of cottonof thickness of 40 count or below.

Besides the fact that imported cotton is slightly costlier than domestic cotton, the main problem of northern India based mills is that they have to bear the additional cost of bringing the imported cotton from the Mumbai ports to their mills, pointed out Ahluwalia.

Realising the problem of the textile mills, the textile ministry had removed cotton use restrictions for EOUs around six months back for a period ending December, 1999. The EPCG units, which are under the obligation to export a certain percentage of their exports, were, however, not given any such concession. In the letter to the secretary, NITMA president, HB Chaturvedi, stated that EPCG units were also facing the same problems that EOUs faced and that their case should not be ignored.

With the south-east Asian economic crisis and the resulting devaluation of their currencies, Indian textile has been facing stiff competition in the international market. The association believes that threat from south-eastAsian countries would not be over by December so the concession should continue beyond the stipulated date and made permanent.

In the liberalised environment there is no logic in continuing with such restrains and they should be dispensed at the earliest, said Chaturvedi.