Cotton federation warns of steep fall in prices

Maharashtra State Cotton Growers Co-Operative Marketing Federation (MSCGCMF) has warned of impending threat of stagnation followed by steep fall in price of cotton in the State if the ban on its export is not lifted by the Centre.

There are 2.5-3 million bales of cotton now in excess in the country and the stock is lying with farmers, Federation Chairman N P Hirani said today.

Hirani said he has raised the issue of further relaxation in cotton export in a meeting with Chief Minister Prithviraj Chavan in Mumbai on Wednesday last.

The Chief Minister had called the meeting to take stock of the situation in cotton and sugar sectors in the State so as to take up the matter with the Centre, he said.

Besides Hirani, Federation Managing Director Ujjal Uike, Ministers and officials concerned attended the meet.

After sustained efforts, the Centre has liberalised the 5.5 million bales cap on export and permitted export of an additional one million bales, Hirani said.

"We have insisted on further opening of the cotton market so that farmers can get the benefit of the bumper crops during the year," he said, adding even after the export of one million lakh bales, there would be 7.5 million bales in excess.

"If the Government fails to reconsider its stand to impose restrictions on cotton export, there will certainly be a steep fall in price in the next year which will lead to more farmers committing suicide in the cotton belt (Vidarbha).

"This year, farmers are keen to sow cotton more than the previous year and if rain is adequate, there will be again a bumper crop. This will create excess inflow and price will fall alarmingly in the domestic market, he said.