http://www.dnaindia.com/Cotton ban rolled back, but fresh exports curbed
**This will worsen exploitation and corruption in DGFT and affect market sentiment. Already, bales trading has plummeted from Rs34,000 and above to Rs32,400.This, when international rates are around Rs45,000,” said Kishore Tiwari of Vidarbha Jan Andolan Samiti. “Unless the export ban is completely lifted, the cosmetic relief will mean little to the 7 million cotton farmers in the country,” said the activist.Tiwari, in fact, proffers a conspiracy theory — that the powerful readymade garments lobby is behind the move and pulling strings to ensure the ban stays.According to him, the domestic demand for cotton is just 20 million bales as against a
national production of 33 million bales, which means the interests of the domestic textile mills is fully protected.**
A day after commerce minister Anand Sharma announced that the decision to ban cotton exports was being revoked, the government on Monday said the rollback is only for quantities already registered but not shipped.For the rest, the ban continues. “No new registration certificates will be issued,” said commerce secretary Rahul Khullar.
The central government hereby withdraws the notification dated March 5, 2012,” the Directorate General of Foreign Trade (DGFT) sai
d in a notification.
“Issue of new RCs (registration certificates) stands suspended until further orders,” it said, adding that even the RCs already issued need to be revalidated.
A group of ministers is likely to review the ban in two weeks, said Khullar.
The government has been under fire from its allies and advocacy groups over the decision to ban cotton exports.
The latest flip-flop too has drawn sharp criticism.
“This will worsen exploitation and corruption in DGFT and affect market sentiment. Already, bales trading has plummeted from Rs34,000 and above to Rs32,400.
This, when international rates are around Rs45,000,” said Kishore Tiwari of Vidarbha Jan Andolan Samiti. “Unless the export ban is completely lifted, the cosmetic relief will mean little to the 7 million cotton farmers in the country,” said the activist.
Tiwari, in fact, proffers a conspiracy theory — that the powerful readymade garments lobby is behind the move and pulling strings to ensure the ban stays.
According to him, the domestic demand for cotton is just 20 million bales as against a national production of 33 million bales, which means the interests of the domestic textile mills is fully protected.
“Is the cartel monopolising garment exports so strong that the government chooses to ignore protests from its agriculture minister, the CMs of Maharashtra, Gujarat, Andhra Pradesh and political parties across the spectrum?”
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