SME Times News Bureau | 22 May, 2010
The government Friday lifted ban on exports of almost all varieties of raw cotton and cotton waste, but henceforth, exporters will have to apply for a license.
A notification released by the Commerce Ministry states that, the export of cotton is allowed under license with immediate effect. But it will remain a restricted item for export.
The government had decided to halt cotton exports from April 19 in the backdrop of 20 percent rise in cotton prices in the domestic market and just within more than a month, it has now decided to withdraw the ban.
This decision from the government has come right at a time when cultivation and sowing of cotton is undertaken by the farmers. The ban had come under severe criticism from major cotton producing states like Gujarat and Maharashtra.
In fact, the announcement comes a day after Chief Minister Narendra Modi asked the Centre to lift the ban. He alleged that the virtual ban had caused a loss of Rs 2,000 crore to cotton farmers in Gujarat.
Earlier, a section of the textile industry had blamed that the ban on cotton exports was just an eye-wash as it came too late when about 7.9 million bales of cotton had already been registered for export till April 8
Recently, the Tirupur Exporters Association (TEA), in a letter to Union Textile Minister Dayanidhi Maran, also urged the minister to maintain status quo on the cotton export ban, adding that if the ban is lifted, it will be disastrous for the Indian textile industry.