New Delhi: In the wake of rising cotton
prices in the domestic market, the government is likely to
take a decision on the demand for banning its exports soon,
Textiles Minister Dayanidhi Maran on Wednesday said.
"We are discussing the issue with various ministries,
including the Commerce Ministry," Maran said, adding the
decision is "expected soon."
Commerce and Industry Minister Anand Sharma yesterday
said that the issue was under consideration of the government.
Taking up the cause of the textile industry, Maran had
earlier written to the Prime Minister seeking ban on the
export of the natural fibre.
Maran had argued that there was no reason for the country
to help industries in Vietnam, China, Bangladesh and Pakistan
by subsidising cotton exports to them. He also said that as a
result of our subsidy here, the manufacturers in these
countries are getting cotton cheaper than our industry.
Cotton prices have increased on the back of rise in
global demand and rising speculation. International traders
expect supplies to fall short by 1.5 million bales (a bale
equals to 170 kg).
Shankar-6 variety of cotton was selling at Rs 25,000 a
candy (356 kg) against Rs 23,000 a candy last year.
India's cotton production is expected to drop this crop
year (October to September) due to floods in the growing areas
of Andhra Pradesh and Karnataka.
The cotton export is covered under the government's
subsidy scheme known as Vishesh Krishi and Gram Udyog Yojana.
Bureau Report
First Published: Wednesday, November 18, 2009, 21:28