‘Cotton export only after meeting domestic requirements’

Mr. Dayanidhi Maran said cotton export would begin only after the domestic requirement was met and if there was surplus. File Photo: M. Govarthan

Seeking to allay apprehensions of textile industry over cotton exports, Union Textile Minister Dayanidhi Maran on Friday said the Centre would ensure that the domestic requirement was met and export of raw cotton would not exceed 55 lakh bales this year.

“The online registration of cotton export has started and the export of cotton will not exceed 55 lakh bales,” he said on the sidelines of a function here.

Stating that the domestic demand was about 260 lakh bales, Mr. Dayanidhi Maran said export would begin only after the domestic requirement was met and if there was surplus.

Citing representations he had received, Tamil Nadu Chief Minister M. Karunanidhi had last month written to the Prime Minister Manmohan Singh appealing to him to ensure that the domestic requirement of cotton was fully met before permitting any export.

Various industry associations, particularly in the State, a major textile producer, have opposed export of cotton, saying it would hit the domestic industry.

Mr. Dayanidhi Maran said cotton would usually arrive in September, but this year due to heavy rain in certain region it had been delayed. “Now it has (cotton) started arriving”, he said.

To a question whether there would be possibility of malpractices in the online registration for cotton exports, he said, “It is just online registration. It is not online trading and therefore, there cannot be any malpractices.”

He said mandatory online register was needed from those who want to export cotton.

To a question on recent increase in cotton price, Mr. Dayanidhi Maran said the cotton prices would stabilise in coming weeks.

Currently, the cotton prices in the domestic market are ruling over 65 per cent higher than Rs. 22,400 (per candy) in the same period last year.

Mr. Dayanidhi Maran said the Centre, in the interest of weavers, was also keen on generating job opportunities for them by converting cotton into clothes for exports.

Stating that the apparel export from the country had declined by 12 per cent, he said measures had been taken to increase it in the coming years.