|
Govt rules out ban on cotton exports
Agencies - New Delhi
The government has ruled out any ban on cotton exports
to stabilise domestic prices as the commodity is being increasingly diverted
to take advantage of soaring global prices. Though there has been a bumper crop
in Punjab, Maharashtra and Gujarat this year, cotton prices are rising continuously
as exports are on the upswing due to bad crop in China and elsewhere.
After a poor harvest last year, the country’s
cotton production is expected to be 170 lakh bales this year as against 136
lakh bales last year, the textiles minister Mr Syed Shahnawaz Hussain said.
As cotton is already under open general licence there is no question of banning
its exports, the textiles secretary Mr S B Mohapatra said.
He said cotton prices were ruling around Rs 2,200 a
quintal until recently and shot up to Rs 2,400 a quintal, which was still lower
than international prices pegged at around Rs 2,600 a quintal. Though the soaring
prices have hit domestic textile mills, they have come as a boon to farmers
who suffered a bad crop last year. “In the interest of farmers, there was
no rationale for even contemplating a ban on exports, nor was it possible as
the commodity was under OGL,” Mr Mohapatra said.
He said prospects for exports of the commodity had
brightened due to a bumper crop this year and added that prices of cotton which
had shot up last year should stabilise to some extent. However, he said the
price may not come down so much as Chinese crop this year has not been so good
and China is likely to rely on imports.
|
E-Mail
Print
