New Delhi, Nov 04: Government today ruled out any ban on cotton exports to stabilise domestic prices as commodity is being increasingly diverted to take advantage of soaring global prices. Though there has been 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, Textiles Minister Syed Shahnawaz Hussain said. As cotton already come under open general licence there is no question of banning its exports, textiles secretary S B Mohapatra told.
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 textiles 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," Mohapatra said.
Bureau Report