This is the second time the Commerce and Industry Ministry has been caught on the wrong foot
Prime Minister Manmohan Singh on Wednesday stepped in to put an end to the row between Union Commerce, Industry and Textile Minister Anand Sharma and Agriculture Minister Sharad Pawar by asking the Group of Ministers (GoM), headed by Finance Minister Pranab Mukherjee, to review the ban on cotton exports on March 9.
Mr. Pawar had on Tuesday complained to the Prime Minister that he was not taken into confidence on the ban issue and had come to know of it only after the Director-General of Foreign Trade (DGFT) had issued a notification on Monday. This is the second time the Commerce and Industry Ministry has been caught on the wrong foot in the last few months with an UPA ally. Earlier, the decision of the Union Cabinet to allow 51 per cent FDI in multi-brand retail had kicked up a row with the UPA ally and West Bengal Chief Minister Mamata Banerjee opposing it stating she had not been taken into confidence on the issue.
Maharashtra Chief Minister Prithviraj Chauhan and Gujarat Chief Minister Narendra Modi have also strongly opposed the export ban, pleading that this would prove to be detrimental to the interests of farmers.
Congress delegations from Maharashtra and Gujarat met the Prime Minister and sought revocation of the ban order. .
India had already exported almost 9.4 million bales of cotton this fiscal, higher than the projected export surplus quota of 8.4 million bales. Each bale is around 170 kg. Over 80 per cent of exports so far had headed for China. Exporters and traders have signed contracts for nearly 10 million bales.
The DGFT has maintained that the ban is aimed at ensuring sufficient supply of cotton for the domestic textile companies.
This is the second time in the last two years that the Commerce Ministry has banned cotton exports, a move, many said, could make international buyers nervous about sourcing from India.
The Cotton Association of India said it was shocked to hear about the ban even against past registrations.
“The registered but unshipped quantity as reported by the Textile Commissioner's office on the day of the announcement (Monday) was around 25 lakh bales,'' according to Dhiren Sheth, President of the Association.
Keywords: cotton export ban, textile industry
Can anybody please explain the issue clearly?
It appears from the discussions that Cotton traders & exporters are more interested in making money and supplying cotton to China than the welfare of the Cotton farmers & price of cotton products in India. Now that India knows that it has some influence on the clothing situation in China, India should use this opportunity to have a good response from China in the Boarder issues & water issues( Kashmir/Arunachala & Brahamaputra water Dams) Government of India should not be afraid to use diplomacy to achieve its goals. First find out who is to gain from lifting the band on Cotton exports. Have statistics & facts behind this critical decision. Don't go by mere slongan alone.
Why all are making noise when we know our textiles sector are facing lots of problem due to hike price,when India total production was 1.5 crore bales then price was 17000 to 18000 P/candy, after double then price is also double. China can build up stock but India can't why,this is true that our well wisher in Lok sabah(Parliament) are self exporter so they are in big trouble due to ban they never think about the poor all are drama.
banning an export is killing an opportunity; let alone a surprise ban;
in this era when statistics and planning are aided by high technology, are we not able to have a long range planned activity. On this ban, apparently the agriculturists will impacted; the agriculturists are part of the least organized sector in this country. helping the organized cotton industry sector, at the cost of the livelihood of the unorganized agriculturists is unethical to tell the least.
the commace ministry says ban is aimed to mainten cotton supply to domastic mills but the mills are not procuring cotton becase of power cut ,higher interest rate ,weak dimand for yarn ,inaducate funding ect govt. is not doing any thing for this probleam and making supply on case of farmer
why comments are moderated, it is better you put news and write comments.
The UPA is still "Gathering "Boulders to drop on their feet.
Good to "HURT "Gujarat and Rajasthan farmers who are still reeling
under debts.
Is it a result of Mr.Sharma's visit to Pakisthan .Has he made any
promises to them about Cotton Export.
Mr.Pawar's hands are further weakened and he will have tough time
in Maharashtra.
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