Review cap on cotton exports: Badal to PM

In a letter to the PM, Badal stated that Punjab produces about 20 lakh bales of cotton annually

PTI | July 27, 2011



Punjab chief minister Parkash Singh Badal on Wednesday sought the personal intervention of prime minister Manmohan Singh for lifting the cap on cotton exports in the 2010-11 kharif marketing season.

Badal has sought permission for additional exports of about one million bales to ensure a remunerative price to cotton growers for their produce during the ensuing 2011 kharif marketing season.

In a letter to the prime minister, Badal apprised him that Punjab is one of the major cotton producing states of the country and it produces about 20 lakh bales of cotton annually.

As per estimates of the Cotton Advisory Board of India, total cotton production in the country during 2010-11 is likely to amount to 339.3 lakh bales, while domestic consumption is pegged at 240 lakh bales.

"Hence, as per current scenario, there is a surplus of cotton in the country. The Union government had imposed a quantitative restriction on cotton exports in October, 2010, when prices of the natural fibre had shot up.

"The government allowed export of only 6.5 million bales of cotton during the 2010-11 season to protect the domestic textiles industry in the wake of rising prices of the raw material," Badal wrote, according to an official release here on Wednesday.

The chief minister also informed Singh that the restrictions on cotton exports led to softening of cotton prices, which has been sharply criticised by farmers' organisations of cotton producing states.

During the 2010 kharif marketing season, prices of cotton remained firm and consequently, the area under cotton during the current kharif season increased, he said.

Badal also pointed out that production of cotton in the country is likely to increase. The International Cotton Advisory Committee has estimated that global cotton production could reach 27.3 million tonnes by 2012 due to improving prices.

In light of these facts, he impressed upon the Prime Minister the need to immediately review the restrictions imposed on the exports of cotton and permit additional exports of about one million bales to cotton growers during the current kharif marketing season.

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