The Cotton Association of India has said the demand for ban on cotton export is “inappropriate” and will only result in farmers subsidising the spinners.
Speaking at the 87th annual general meeting of the Association on Thursday, Mr Dhiren N. Sheth, President, CAI, said there is a movement by certain sectors of the cotton chain to demand restriction or even ban on cotton exports. It is highly inappropriate as the spinning industry does not possess adequate capacity to process all the raw cotton produced in the country.
“Our association has made several representations to the concerned ministries followed by personal meetings with them opposing such unreasonable demands which have borne fruit,” he said.
Crop prospects
Cotton production in 2008-09 stood at 290 lakh bales while the domestic consumption was just 230 lakh bales. The cotton season last year began with serious apprehensions and uncertainty arising out of the consequential implications of steep MSP in the context of highly depressed global market. Exports dropped significantly to 35 lakh bales compared to a record high of 88.5 lakh bales in 2007-08
Though there has been a surge in cotton production in recent years due to the rapid expansion of area under Bt cotton, the production at 290 lakh bales was lower by five per cent compared with 2007-08, he said.
Despite delayed monsoon, current indications are that prospects for cotton crop in 2009-10 are good. In fact, CAB (Cotton Advisory Board) has estimated the cotton crop to be around 295 lakh bales. So far as the yield is concerned, it is likely to be around 495 kg/hectare, said Mr Sheth.
Source : Business Line