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'Lifting cap on cotton exports good step' – Ginners body
Jun '11
The decision of the Union government to permit exports of an additional one billion cotton bales (1 bale = 170 kg) has thrown up contradictory reactions from amongst various segments of the cotton value-chain in India.

While on one hand, the cotton ginners who had pressurized the government to allow additional bales of cotton have welcomed the move, the textile sector is unhappy with the decision of the government.

“The government has taken a good step by lifting cap on exports. But the increase is not enough, compared to the current stock position with farmers and traders”, Mr Anand Popat, General Secretary - Saurashtra Cotton Ginners Association told fibre2fashion.

He added, “Yarn spinners have reduced production by 30-40 percent, so the consumption which was estimated at 26.6 million bales, according to SIMA & CAB, will now, be not more than 2.4 million bales. So, ideally, cotton export cap should be extended by an additional 1.5 million bales”.

Mr Anand Popat is also optimistic that the government might further tentatively permit an additional 1.5 million cotton bales for export.

Fibre2fashion News Desk - India

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