Garment and knitwear manufacturers in Punjab and Haryana are expecting cotton yarn prices to stabilise in the coming days with Centre agreeing to put a ?temporary ban on cotton yarn exports?.
The move is expected to check the rise in cotton yarn prices, which has doubled during the past two weeks compared with last year?s prices, said Ajit Lakra, president, Ludhiana Knitwear Association.
?This will result in fall in cotton yarn prices from the current level of around Rs 250 a kg to less than Rs 170 per kg in the domestic market, added Lakra.
Cotton prices in Punjab, Haryana and Rajasthan were being quoted between Rs 4,600 to Rs 4,800 per quintal and had touched an all-tine high of Rs 5,000 per quintal last month as export increased to neighbouring countries.
In a letter to Union textile minister Dayanidhi Maran and Union minister of commerce and industry, Anand Sharma, knitwear and textile units from Punjab and Haryana had drawn attention to the declining trend in garment exports. According to data released by commerce ministry, apparel exports during April-October declined by 8%.