Faced with the prospect of a bumper cotton crop this year, the government is considering providing export incentives in the form of subsidies to double cotton exports. | |
| Senior government officials told Business Standard that the textiles and the agriculture ministries had "in-principle" agreed to introduce a new export subsidy scheme for cotton. The proposal is expected to be formulated on the lines of similar export subsidy schemes run by the commerce ministry. |
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| The proposal is likely to be taken up by the Cabinet soon. |
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| Officials said as per the current estimates, cotton production this year was expected to be around 21.3 million bales as against 17 million bales last year. |
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| India usually exports between 600,000-700,000 bales while importing a similar amount. Officials said the aim of the incentive scheme would be to push up cotton exports to around 2-3 million bales this year. |
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| The subsidy for the scheme would be provided out of the annual budget of the textiles and the agriculture ministry. |
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| In addition to the proposed subsidy, the textiles ministry has also formally mooted a proposal to export cotton to Pakistan through the land route. |
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| "The ministry is in favour of allowing exports of cotton to Pakistan, but the proposal has to be cleared by the external affairs ministry," a textile ministry official said. |
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