Govt may finalise new cotton policy on Sept 28

The government is likely to finalise the new cotton policy next week amid intense lobbying by the textile industry for a freeze on exports, even as the country is set to harvest a bumper crop in the coming season, beginning October.

Senior ministers, including Finance Minister Pranab Mukherjee, Agriculture Minister Sharad Pawar, Commerce and Industry Minister Anand Sharma and Textiles Minister Dayanidhi Maran, will meet here on September 28 to finalise the policy, days ahead of the start of crop arrivals in the mandis.

"We are trying to ensure adequate availability of cotton in the country. The ministers will try and formulate a Cotton Security Policy for the crop year 2010-11," an official said.

While Commerce Secretary Rahul Khullar had announced an export target of 55 lakh bales (170 kg each) earlier this month, the ministers may review the target in light of the expected output of 335 lakh bales this year compared to 295 lakh bales last year.

The government had restricted cotton exports last year, but the decision came in for criticism from the Prime Minister's Economic Advisory Council (PMEAC), which wanted fixing of the targets well in advance of the season.