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Punjab CM urges PM to review cotton export ceiling

Jul '11
Parkash Singh Badal, Chief Minister of Punjab has appealed to Prime Minister Manmohan Singh to personally intervene to review the ceiling on cotton exports for the 2010-11 kharif marketing season.

The Punjab CM has demanded that export of one million cotton bales beyond the existing ceiling be allowed, so as to ensure better returns to cotton farmers for their produce for the forthcoming cotton marketing season of 2011.

In his letter to the Prime Minister, Mr. Badal said that Punjab being one of the country's leading cotton producing States produces around two million bales of cotton each year.

According to the Cotton Advisory Board of India's estimates, the country's total cotton output for the 2010-11 is expected to come to around 32.5 million bales, against which the overall demand is expected to be at around 24 million bales. Thus, in view of the present situation, it seems that the country would have a crop surplus.

The Union Government in October 2010 capped cotton export for the 2010-11 season at 5.5 million bales to safeguard the interest of domestic textile sector, in view of soaring raw material price. However, this ceiling was subsequently relaxed by one million bales to 6.5 million bales.

Mr. Badal even apprised the Prime Minister that the ban imposed on export of the natural fibre led to an ease in the cotton prices, which has come under severe criticism from farmers' organizations of States involved in production of cotton.

Further, the Punjab CM said that the overall world cotton output is likely to grow and as per estimates of the International Cotton Advisory Committee, the world cotton output is likely to touch 27 million tons by 2012, due to rising prices.

In view of all this, Mr. Badal stressed on the need to urgently review the cotton export ceiling and to allow additional exports of one million cotton bales during the ongoing kharif marketing season.

Fibre2fashion News Desk - India

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