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| Govt rules out cotton export ban |
| Press Trust Of India / New Delhi Sep 26, 2008, 00:54 IST |
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The government has ruled out any plan to ban cotton exports in the wake of estimated production of 32 million bales outweighing the domestic demand for the season beginning October. Each bale weighs 170 kg.
“The cotton acreage is not less.... Production is going to be high, and there is no proposal to ban exports of cotton,” Textile Minister Shankersinh Vaghela said here yesterday.
Vaghela was speaking after releasing a book ‘Indian Design Edge’ authored by National Institute of Design Director Darlie Koshy.
The textile industry has been lobbying for suspension of cotton exports, claiming that high prices of the commodity have made their operations expensive and uncompetitive.
However, the government met one of the industry demands and scrapped 14 per cent import duty on cotton and also withdrew export incentives to boost domestic supplies.
Vaghela said cotton productivity has increased and the production is estimated to be 31.5-32 million bales this crop year (October-September).
Cotton production in 2007-08 is pegged at 31.5 million bales and domestic consumption at 24 million bales, according to government estimates. The consumption in the current season is expected to be 28 million bales.
The industry has also been protesting the increase of 40 per cent in the minimum support price for medium staple cotton announced by the government last month.
Cotton import in the country is estimated at 0.5 million bales and export at 8.5 million bales for the season ending September.
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