Imposition of 5% VAT on cotton leads further price fall after stringent norms stalled all Cotton Export–VJAS.
Nagpur -March 28, 2012
Maharashtra Govt. who has declared relief package of Rs.2000 crore to around 5 million cotton farmers after crop failure in more than 40 lakh hector to address on going agrarian crisis but in the budget same Govt. has put 5% VAT on cotton which is 2% in all other cotton growing states has leads to further price fall of Rs.200/- per quintal and cotton has is reported to be traded around Rs.3400/- per quintal as against Rs.-4200/- in first week of march has increased economic losses of cotton farmers of vidarbha region where farmers are killing themselves due debt and distress, informed farm activist Kishore Tiwari of Vidarbha Jan Andolan Samiti VJAS today urging Maharashtra Govt. to roll back the increased 5% VAT proposed in the budget.
Earlier DGFT literally stalled on cotton export by sea and road both and which has dampen the market sentiments further and resulted price cash in candy for lint and for raw cotton too hence VJAS, has demanded GOM who is likely to meet on 3rd April to review situation to lift all restrictions on cotton exports and remove the environments of fear where traders’ and exporters’ are being scanned as smugglers’ and are being subjected to unwanted harassments and massive corruption .
“When cotton arrival as per CCI data is only 242 lakhs bales as against 278 lakhs bales of last year and as per lowered estimate till 120 lakhs bales arrival is awaited hence such restrictions will put more than 7 million cotton growers ,traders and exporters huge economic losses and will damage Indian cotton trade to larger extend hence protecting handful garments industries DGFT all unfair trade practices should curbed and there is urgent need to review the functioning of commerce ministry where some Babus are detecting their terms to ruin agrarian economy of cotton growing region of India henc ewe demand urgent intervention ”Tiwari added.
DGFT recent Trade Notice 24 dated 20th March, 2012 says that Government has decided that priority in scrutiny and revalidation should be accorded to the cotton consignments that were handed over to customs till 2400 hours on Sunday, 04 March, 2012, when the prohibition had come into force. Greater priority will be accorded to cases pertaining to Land Custom Stations (LCS) on Indo-Pakistan, Indo-Bangladesh and Indo-Nepal border to ease congestion there but in fact they is no congestion and moreover main issue of clearing and issuing fresh RC to china which contributes more than 70% of total export hence motive behind the recent trade notice is also ill- managed as same trade notice further add that fresh export would be permitted only after revalidation of RCs and there is package deal for fresh revalidation and DGFT officials are demanding big cash fro RC hence we demand unconditional export of cotton as per WTO norms and Indian free tarde policies ,Tiwari added.
Earlier DGFT had disappointed exporters, traders and cotton farmers and hidden restrictions in roll back order has turned out to be fresh export ban to purchases and trades hereinafter as it is clearly says that issue of new RCs stands suspended until further orders and in respect of those RCs, that were valid as on 05.03.2012 and for which LEOs are yet to be issued & exports completed. All RCs would need to be submitted to DGFT for scrutiny and revalidation. Exports can be affected only after RCs are revalidated hence now getting extension to existing contracts will give scope further exploitation and corruption in DGFT that has deepen sentiments of market and bales which were traded @Rs.34,000 above has returned to @RS.32,400 level resulting there is no change in the local market were farmers are surprised see @ Rs.3400 per quintal as against international rates of @Rs.45,000/- hence roll back on cotton export ban is nothing but the eyewash hence we demand blanket lifting of export ban under free export of raw cotton under OGL that can save dying debt trapped 7 million farmers of India, informed farm activist Kishore Tiwari of Vidarbha Jan Andolan Samiti VJAS,.
‘If UPA Govt. has problem with growth of cotton export they want to protect textile cartel then they should buy cotton@ international rates with his agencies like NAFED and CCI. ,protecting the innocent dying cotton farmers’ who are forced to sale cotton at throw price to local dealers who are subjected to market forces and volatile export policies of UPA Govt. most of the time managed by handful people hence PM should intervene ’Tiwari urged.
“when Indian domestic demand is just 20 million bales as against national production of 33 million bales there is no reason put restrictions when interest of domestic textile mills are fully protected .the decision to ban Indian cotton export is another example rampant corruption going on in UPA Govt. there is big names involved in the sudden export ban will expose the all misdeeds of commerce ministry hence for the first time farmers suicide issue has given focus of wrong policies of state ,we will see that the truth is prevailed” Tiwari added.
“India, one of the largest exporters of Cotton in the world, had left alarm bells ringing across the World and cotton cultivated in more than 124 lakhs hectors and more than 7 million cotton growers are involved and this main cash crop of India but cartel which monopolies the garment export is managing commerce ministry to impose such ban since 2010 even India singed WTO has already lifted quantitative restriction on import-export and corrupt Babus with undue protect from concern minister are involved in such unjust ,untimely ,ill motivated decision hence to avoid it’s reoccurrence cotton export ban decision needs CBI probe and PM should arrange to sack his commerce minister as facts added by GOM and protest from Agriculture Minister Sharad Pawar and chief ministers of Maharashtra , Gujarat, AP and all political parties UPA and NDA hence only lifting ban is not sufficient and accumulated losses of cotton growers traders must be compensated by Govt. without delay” hence open free export of cotton is only solution , Tiwari added.