Allow cotton exports sans curbs, association tells Centre

Mumbai, May 22 (PTI) The Cotton Association of India (CAI) has requested the Centre to allow exports of cotton without any quantitative restrictions.

In a memorandum to Prime Minister Manmohan Singh, the association has sought immediate steps to make exports of cotton free under OGL (open general licence) without any quantitative restrictions.

Cotton exports have not been permitted since the end of February which has resulted in almost 30 per cent crash in prices, CAI President Dhiren Sheth said.

In spite of this, it is ironical that prices in India remain around 15 to 20 per cent cheaper than that of the world and farmers have been deprived of realising the international value for their cotton whilst they have been witnessing an erosion in the value of their produce day by day since the last couple of months, he said.

The blocking of exports has adversely affected the interests of the nation in general and that of the Indian cotton farmer in particular, Sheth maintained.

"While the Indian farmer has the protection of a guaranteed MSP there is no reason to stop him from realising value for his produce that is equal to his counterpart in USA, China, Uzbekistan and several African countries."

It is feared that the cotton acreage, which has seen a rising trend in recent years, will receive a setback if farmers don''t get a fair price as per global levels, he said.

Farmers will soon take a decision about which crop to sow and the restriction on exports at this time of falling prices will discourage them from planting cotton in the coming season, Sheth said.

Source: http://in.news.yahoo.com/allow-cotton-exports-sans-curbs-association-tells-centre-064000635.html