Govt removes ban on cotton exports

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SME Times News Bureau | 30 Apr, 2012
Succumbing to political pressure, the government Monday revoked the ban on cotton exports and said fresh exports will be allowed without any quantitative restrictions.

"A decision has been taken to remove suspension of cotton exports registration. Registration of cotton exports will be allowed by the government," Commerce and Textiles Minister Anand Sharma told media in New Delhi after meeting Agriculture Minister Sharad Pawar today.

The Informal Group of Ministers (GoM) met under the chairmanship of Pranab Mukherji today reviewed the cotton export situation. After a comprehensive review it was decided that suspension of new registrations for cotton exports be revoked and exports be permitted, informed the ministry in a press release on Monday.

The meeting was attended by Agriculture Minister, Sharad Pawar, Commerce and Textile Minister, Anand Sharma and Chairman of the Prime Minister’s Economic Advisory Council Dr. C. Rangarajan.

Sharma said there would not be any quantitative restrictions on registration for exports, but the group of ministers (GoM) would review the situation in two-three weeks.

He said, "Cotton availability to ensure that the domestic industry needs are met, textile sector directly or indirectly provides employment to 105 million people in this country. The handloom sector also employs a large number of people, particularly, the weaker section of the society. Therefore, a balanced view had to be taken, the GOM will make a fresh assessment in three weeks time."

The Govt has reviewed the cotton situation had asked the Cotton Advisory Board (CAB) to meet and to make a fresh assessment the CAB had met on 18th of April and they had also taken into consideration the 3rd estimate of the cotton crop size as given by the Ministry of Agriculture.

The Cotton Corporation of India has been mandated to build a buffer stock of 10 lac bales to meet any exigency during the months of June, July and August 2012.

Earlier this month, the CAB had revised production estimates upwards to 347 lakh bales from 345 lakh bales for the current season. It has also revised domestic consumption estimates downwards to about 250 lakh bales from 260 lakh bales earlier.

The Agriculture Ministry too has revised upwards cotton output to 352 lakh bales from 340.8 lakh bales.

Before the ban was imposed, the government had issued registration of certificates (RCs) for about 130 lakh bales.