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Indian Textiles Ministry plans Cotton Distribution Policy
Sep '13
The Ministry of Textiles, Government of India, is planning to come out with a Cotton Distribution Policy to bring stability in the prices of cotton.
Under the plan, the Ministry proposes to levy a 10 percent duty on shipments of cotton beyond a declared exportable surplus, Economic Times reported quoting PTI.
In 2012-13 cotton season (October to September), India produced 35 million bales (1 bale = 170 kg) of cotton and in 2013-14 season the output is expected to be between 37 million bales and 40 million bales, which means there will be adequate cotton, Textiles Minister K Sambasiva Rao said on the sidelines of an event in New Delhi.
Talking to media persons on the sidelines of ‘International Seminar for Promotion of Exports of Indian Handicrafts & International Craft Exchange Programme’, the Minister said Cotton Distribution Policy is being proposed to bring in stability in prices for cotton growers, ginners, spinning mills and weavers.
The Textiles Ministry’s proposal recommends imposition of a 10 percent ad valorem export duty at freight on board (FOB) or Rs. 10,000 per ton, whichever is less, for all cotton exports exceeding the declared/revised exportable surplus.
The proposal is aimed at putting in place a stable, transparent, production and tariff driven cotton market to balance the interests of stakeholders in the entire value-chain.
The Cotton Advisory Board (CAB) under the Textiles Ministry is yet to announce its cotton production estimate for 2013-14 cotton season.

Fibre2fashion News Desk - India

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