Vidarbha Farmers welcomes to Govt decision lifts restrictions on cotton exports

Vidarbha Farmers welcomes to Govt decision lifts restrictions on cotton exports

Nagpur –July 31, 2011

Vidarbha cotton farmers who are killing themselves due to cotton price crash after the imposition of export ban on cotton bales welcome the government today decision to remove all quantitative restrictions on the export of cotton and permitted shipments under open general licenses (OGL) for the remainder of the current season.

As per announcement of commerce secretary Rahul Khullar the remaining stock of cotton bales for the cotton season runs from October to September will be under free export . Cotton exports for the remaining two months (August and September) have now been put under OGL, "Now, exporters only have to register with the Directorate General of Foreign Trade (DGFT)," khuller said.

“this is long pending demand of cotton farmers of India has been finally fulfilled ,we are thankful that to the ministries of commerce, textiles and agriculture, convened by commerce and industry minister Anand Sharma here last week who are forced the textile ministry to change it’s stand ” , Kishore Tiwari of Vidarbha Janandolan Samiti VJAS informed in press note today .

In October last year, the government had capped cotton exports at 55 lakh bales (170 kg each) to protect the domestic textiles industry in the face of rising raw material prices. An additional 10 lakh bales were permitted for export in June, after prices had corrected sharply.Prices have declined to about Rs 31,000 per candy (356 kg) now from the peak of Rs 62,500 per candy in March-end.

The restrictions on cotton yarn were removed from April 1, after the manufacturers found themselves saddled with big inventories following the curbs on exports.

According to the estimates of the Cotton Advisory Board (CAB), the cotton surplus at the end of the current season would be 52.5 lakh bales on account of lower industry demand. In February, the CAB had estimated it at 27.5 lakh bales.

Likewise, the projection for domestic consumption of cotton this season has been lowered to 236 lakh bales, as against the earlier estimate of 265 lakh bales, on account of high inventories.

Due to export restrictions the cotton price are further crashed in India more farmers suicides are being reported the reason for much Taboo on Cotton exports from India is result of unholy cartel of finger counting textile tycoon and Union Textile Minister Dayanithi Maran which is responsible for present cotton growers crisis in India ,farm activist group Vidarbha Janandolan Samiti VJAS allged and Indian prime minister to was asked to sack Union Textile Minister Dayanithi Maran to save more than 5 million dying cotton farmers of Maharashtra .

“Cotton prices have increased from Rs 30000/candy in April 2010 to Rs 60000/candy April 2011 which is an increase of about Rs 70-75 per kg and immediately Spinners increased the price of yarn from rs 150/- per kg in April 2010 for 30s combed to Rs 230/- per kg in April 2011. increase of Rs 80 per kg which reflects in cotton value to Rs 30000/per candy minimum. Fabric weavers too have increased prices of grey fabric of 40 x 40 counts 124 x 64 with 200 gm per mtr which is quoted at about Rs 70/- per sqmtr as against Rs 38 in April 2010. There s an increase of Rs 32/mtr which is Rs 160/- per kg which in terms of candy is about Rs 58/60000 and present ban on export has brought back cotton prices to the level of April 2010 which is artificial an stage managed and Union Textile Minister Dayanithi Maran was directly involved in this scam ” Tiwari added.

‘As Cotton is an agricultural commodity and higher the prices farmers get, they will be encouraged to produce more and more of cotton and when Cotton production has grown from a low of 225 lac bales to 330 lac bales in last 5 years the undue protection to Local textile mills benefiting of buying Indian cotton at prices which are at least

lower by 30% as compared to its competitor in Bangladesh, Pakistan and other countries who buy from other growths which is reason behind the present restriction of cotton export and when Indian cotton after lot of hard work and promotion by exporters have found a very stable and regular market of its cotton in foreign countries and Govt should ensure that the markets created are not lost to competition due to faulty Govt policies.” It is alleged.

‘We urge central intervention and demand to lift all export restriction of cotton bales and yarn permanently too so that farmers get higher price to cotton ‘’Tiwari urged.