BUSINESS

Centre considering cap on cotton exports

M. Soundariya Preetha



Ministry moots data collection

Suspension of exports sought



COIMBATORE: The Union Ministry of Textiles is considering a cap on cotton exports, according to a senior official in the Ministry.

The official told The Hindu on Monday that the Ministry was certainly not looking at a ban on cotton exports. The Government was looking at various options to ensure cotton was available to the local consumers at prices on a par with the international level. Farmers and the consumers should benefit. “So, we are trying to see if we can have some limit on what exports should be.” The recent measures in which the Centre brought down the import duty on cotton to zero and withdrawal of export incentive for cotton were expected to bring down cotton prices.

The Ministry had also mooted data collection related to cotton exports, the official added. Quick availability of data was essential. Hence, the Ministry was looking at a system of registering actual exports. The official pointed out that cotton prices were spiralling in other countries too. With the industry expecting cotton exports from the country to cross 100 lakh bales this year and the cotton prices shooting up during the last six months, the domestic textile industry had sought suspension of cotton exports till December. There was a representation from a section of the industry to ban export of waste cotton.

Recommended for you