Textiles Ministry not for cotton export cap hike

New Delhi, Jan. 22

The Textile Minister, Mr Dayanidhi Maran, said on Saturday that his Ministry is not in favour of allowing export of cotton over and above the specified cap of 55 lakh bales (170 kg each).

Speaking at an event in Erode, Mr Maran said the Government is taking steps to bring down the prices of the natural fibre in the domestic market.

“The Government will allow export of only 55 lakh bales of cotton which is surplus and, on no account, we will allow more cotton to be exported,” Mr Maran said.

This comes in the wake of a statement by the Agriculture Minister, Mr Sharad Pawar, on Friday that the Government may consider allowing further export of cotton, as production is expected to be slightly higher than the initial estimate of 32.5 million bales in the crop year to September.

The Government had earlier allowed export of 55 lakh bales for the 2010-11 marketing season (October-September) of which 36 lakh bales have been shipped so far.

Several textile industry bodies, including the Confederation of Indian Industry and the Tirupur Exporters Association, have sought restrictions on cotton exports, citing rising prices and their impact on finished goods.

(Source: http://www.thehindubusinessline.com/2011/01/23/stories/2011012350790300.htm)