The Handloom Export Promotion Council (HEPC) has signalled thumbs down to the Central Government move to lift the ban on cotton exports saying that would result in rise in domestic price.
HEPC Chairman and Secretary of the Karur Exporters' Association S. Gopalakrishnan has written to the Union Textiles and Commerce Minister Anand Sharma and senior officials of the departments concerned on the need to disallow cotton exports. In particular, cotton and yarn exports must be disallowed forthwith, he has argued.
Market plays a waiting game
M. Soundariya Preetha writes from Coimbatore:
The lifting of export ban had subdued reaction from the cotton market.
Trade sources here said that “the stalemate continued with subdued reaction to the notification and a no demand-supply situation in the market on Monday.”
Prices went up for the widely used Shankar-6 variety of cotton on Sunday following the announcement that the ban on cotton exports was lifted. When the government announced the ban a week ago, prices declined to Rs.32,000 but went up to Rs.34,500 a candy on Sunday (Shankar-6). However, these were the prices quoted and the transactions were negligible.
A price of Rs.34,000 a candy was quoted on Monday in the Gujarat market. Farmers were not keen on selling or reducing the prices and buyers, too, did not want to purchase at higher prices. Buyers and sellers wanted to wait and watch, the sources said.
