Ban on Export of Cotton - Pawar Objects - Matter before GoM
THE DGFT's notification imposing a complete ban on export of cotton including those exports against registration certificates already issued has become a political hot potato with various political parties in cotton farming areas taking up cudgels on behalf of farmers and voicing their concern over the ban.
In view of this the Ministry of Textiles came up with another clarification explaining the reasons for the ban:
Comparison of Cotton Supply and Demand 2010-11 and 2011-12 – CAB Forecasts and Actuals
In Lac Bales of 170 kgs each
CAB Actuals 2010-11 | CAB forecast 2011-12 | Revised on basis of Trends till March 2012 | |
|---|---|---|---|
SUPPLY | |||
Opening Stock | 40.50 | 48.30 | 32.59 |
Crop | 339.00 | 345.00 | 340.00 |
Imports | 5.00 | 6.00 | 8.00 |
Total Supply | 384.50 | 399.30 | 380.59 |
DEMAND | |||
Mill/ SSI Consumption | 245.91 | 240 | 230.00 |
Non Mill Consumption | 26 | 240 | 20 |
Exports | 80 | 84 | 94 |
Total Offtake | 351.91 | 344.00 | 344.00 |
Carry over Stock | 32.59 | 55.30 | 36.59 |
CAB = Cotton Advisory Board
But Sharad Pawar was not impressed. He shot off a letter to the Prime Minister complaining that he was not consulted before the ban and that the ban would hurt millions of farmers. And he had a strong ally in Gujarat CM, Narendra Modi.
Ban on export of cotton is not simple economics; it is complicated politics. So, now the matter goes to a Group of Ministers headed by Finance Minister Pranab Mukherjee. The GoM is to meet on Friday to sort out the issue. It is almost sure that the ban will be lifted on Friday.