Decision on export tax on cotton deferred

The matter has been referred to a group of ministers

Owing to strong opposition from the agriculture department, the Cabinet Committee on Economic Affairs (CCEA) deferred a decision on the cotton distribution policy, which proposes to impose a 10 per cent duty on shipments of the commodity beyond a declared exportable surplus. Officials said the matter had been referred to a group of ministers.

The CCEA also approved additional allocation of five million tonnes of foodgrains for BPL families during the current financial year, which will cost the exchequer an extra Rs 9,471 crore. The continuation of the Accelerated Irrigation Benefits Programme, with an outlay of Rs 55,200 crore, was approved.

This could help states create an additional irrigation potential of 8.7 million hectares. The CCEA also approved the continuation of the catalytic development programme of the textiles ministry relating to sericulture sector.