Pawar, Modi criticise ban on cotton exports, write to PM

Top Stories

»	Indian markets trade higher despite West Asia tensions
»	Sensex, Nifty open 1 pc lower amid West Asia tensions, weak global cues
»	India clocks robust 7.7 pc GDP growth in 2025-26, Q4 growth at 7.8 pc
»	RBI keeps repo rate unchanged at 5.25 pc, maintains ‘Neutral’ stance
»	Crude oil prices fall over 1 pc as ceasefire hopes ease West Asia concerns

SME Times News Bureau | 06 Mar, 2012
Expressing their concern over the ban on cotton exports, Agriculture Minister Sharad Pawar and Gujarat Chief Minister Narendra Modi separately criticised the Centre's decision on Monday to ban exports of all grades of cotton with immediate effect.

Union Agriculture Minister Sharad Pawar Tuesday told reporters, "This is a very serious issue." "I was kept in dark on the issue and have requested the Prime Minister for revocation of the ban as our production is higher this year and farmers are complaining of falling prices," he added.

Meanwhile, Modi on Monday wrote a letter to Prime Minister Manmohan Singh saying that the move will benefit the textile industry at the expense of farmers in the state.

"I was shocked to learn the immediate ban imposed by the Government of India on cotton export today," Modi said in the letter to the Prime Minister.

The Chief Minister demanded that either the ban should be completely lifted or the 'Shankar' variety (grown in Gujarat) should be kept out of the restriction.

Monday, the Directorate General of Foreign Trade (DGFT) has banned cotton exports with immediate effect.

"Export of cotton has been prohibited till further orders," the DGFT said in a press note.

"Export against registration certificates already issued will also not be allowed," the notification said.

According to the notification, export of cotton [ITC(HS) Codes 5201 & 5203] has been prohibited till further orders, transitional arrangements will not be applicable for the export of cotton, and export against registration certificates already issued will also not be allowed.

In January, the Cotton Advisory Board had lowered its estimates for cotton harvesting in the 2011/12 season ending Sept. 30 to 34.5 million bales.

Explaining the loss, Modi said that China released its stocks of cotton in the global market following the ban on the natural fibre by India and profitted from it, which actually should have gone to the Indian farmers.

Modi pointed out that the textile industry is being favoured at the expense of the cotton farmers in Gujarat.

He said that textile mills and yarn manufacturers have a current stock of 27 lakh bales (of 170 kg each) against a minimum of 52 lakh bales as they have not been purchasing the natural fibre.

"Now they want to buy cotton at prices lower than the Minimum Support Price (MSP) through the export ban by central government, which will artificially bring down the cotton prices and create panic among farmers," Modi pointed out.