Cotton export ban critically imperfect
There is a massive fire in export market segment especially cotton which is banned to export as per decision of the Group of Ministers.
But the strong words voiced from overseas are not accepting Maharashtra and Gujarat and they have strongly protested against this move.
Along with them, Union minister for agriculture, Sharad Pawar stated that he was not consulted and he was opposed to this move.
By seeing opposing movement on the decision, the Prime Minister has asked the Group of Ministers to urgently re-examine the decision.
As per Centre, the ban on cotton export is essential because it already cross the fixed export inventory level that was of 84 lakh bales, and till this time cotton exports have reached 94 lakh bales. Major one reason for this may be hoarded higher-than-intended exports in bonded warehouses abroad.
And if Centre would not restrict cotton export, then maintenance of the closing stock in terms of the textile policy at 50 lakh bales is difficult.
Adding depression in the cotton price that is more below this year than the year ago, source said that this time harvest of cotton is projected at 345 lakh bales, by the Cotton Advisory Board.
In wait of more offerings in the upcoming weeks, suppliers have made less supply of cotton as compare to last year. On other hand, most of the textile mills would have purchased their requirements by now and putting impact by persisting prices.
Being pre-planned to resolving the uncertain threat of price falling, Centre resumed its previous action of ban on cotton exports in 2010 that had resulted in much arbitration at the International Cotton Association.
Once again ban on cotton exports has appealed and making it mandatory for cases where registration certificates have been issued.
The textile ministry is trying to revive further and said that all registrations up to March 4 for exports would be honoured.
Ashok Gulati, the Chairman of the Commission on Agricultural Costs and Prices, stated that cotton prices were ruling below the year ago level, hurting farmers and the export ban amounts to “adding salt to injury”.
Tags: Ban, business, Cotton, Cotton Advisory Board, Cotton Export, Exports, Featured, imports, International Cotton Association, NTN, Sharad Pawar, Union Minister for Agriculture