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Cotton export cap badly hits Gujarat ginneries
Jun '11
The unduly long time being taken by the Centre to decide on lifting the export ban on cotton, has led both the ginning industry and the cotton growers to suffer heavy losses due to a drop in domestic cotton prices, the local Ginning Association in Gujarat has claimed.

It stated that the Union Textiles Minister Dayanidhi Maran and Union Finance Minister Pranab Mukherjee on May 19 assured the association delegates that their Ministries would soon resolve the issue. Following this assurance, the ginners called off their strike, which was going on from May 15 onwards. However, nothing has been done on this front till date.

The association wants the Centre to lift the cotton export ceiling of 5.5 million bales. The Centre last year allowed exports of 8.5 million cotton bales, while this year, in spite of higher production, the exports have been capped at a lower level. The association, thus, stated that it is necessary to lift this ceiling in the interest of the farmers.

As a special case the association has sought an export quota of 1.5 million bales for Gujarat.

Fibre2fashion News Desk - India

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