Cotton growers urge govt to lift cotton export ban

16 May '11

2 min read

In a last ditch attempt to earn some profit from sales of unsold stock during current season, the cotton cultivators in Gujarat want the Centre to lift the export ban on cotton.

Though the current crop season is about to end, farmers are still left with 20 percent of their produce as unsold stock.

In order to control cotton prices in the domestic market, due to failure of crop in Pakistan and China on account of heavy floods, the Centre had capped cotton exports at 5.5 million bales.

The commodity prices have kept on fluctuating throughout the season and even hit the bottoms during the current month.

The prices have plummeted from Rs. 62,500 per bale in April to Rs. 44,000 in Gujarat, this month. The price of 20 kg cotton lint too has dropped from Rs. 1,425 to Rs. 650.

According to the cotton cultivators, the Centre should raise the export ceiling in view of record production of 12.5 million bales, this season.

Last year cotton exports were capped at 8.5 million bales, but this year when there has been a rise in production, the Centre instead of raising this ceiling, has lowered it.

Of total production of more than one billion cotton bales in the state during this season, farmers are still left with 20 percent of the same. Thus in order that, they make a tidy profit, cotton farmers are urging the government to lift ban on exports.

The state contributes around 30 percent of the country's overall cotton production.

Editorial note - A lot of farmers who had good holding power, had held on to their produce with the expectations of garnering even higher prices. However, cotton prices which have plunged around 30 percent in the last two fortnights, has thrown this lot in to despair.

Fibre2fashion News Desk - India

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