Allaying fears that cotton was in short supply leading to rise in its prices, the government today said exports of the natural fibre would not be banned.
Textiles Minister Dayanidhi Maran, rejected the demand of apparel exporters and mills to cap the export quantity.
“I think the industry is unnecessarily panicking. There is enough production in our country... the government is not considering any kind of ban on export of cotton. There is no need to panic, we are not going to intervene to put any ceiling. It is not just necessary,” Mr. Maran told reporters here.
Mr. Maran noted that cotton production is expected to be around 290-lakh bales and there is a carry over stock of 40-45 lakh bales, taking the total availability to 330-lakh bales (One bale is equal to 170 kg).
“The peak export of cotton was in 2008-09 where 85-lakh bales were exported. There is a registration of 44- lakh bales, only 7-lakh bales have been actually exported (this year). There is a tendency now of panicking and a knee jerk reaction,” he added.
Industry and trade bodies like CITI and FIEO have been asking for a ban on cotton export in the wake of rising prices of the fibre. They have also asked for putting a ceiling of four-lakh bales a month on cotton exports.
The industry has also asked the Centre not to extend ’Vishesh Krishi and Gram Udyog Yojna’ to raw cotton exports stating textiles units in countries like Vietnam, China, Bangladesh and Pakistan are getting cotton at lower prices than paid by the domestic industry here.
