Maran against allowing further cotton exports

Contrary to hints by Agriculture Ministry that it favours cotton exports beyond the 55 lakh bales limit set by the government, Textiles Minister Dayanidhi Maran today said that there was not enough surplus to ship the natural fibre outside the country.

"We do not have enough surplus cotton to export," Maran told reporters after participating in the convocation of the National Institute of Fashion Technology (NIFT) here.

He said the Textiles Ministry needed to ensure that there was adequate cotton for domestic consumption.

The government has allowed export of 55 lakh bales (170 kg each) of cotton for the current season.

However, Agriculture Minister Sharad Pawar recently said that the growers should be allowed to profit from the high prices of cotton prevailing in domestic markets.

According to the minister while the prices are running high, they are expected to decline after the US crop reaches global markets in February.

"Till then farmers should take advantage. We are going with the policy keeping this in mind," he said.

The government is likely to review the cotton export quota in December even as the textile industry is demanding ban on export of the fibre.

Maran said the primary focus of his ministry was to protect the domestic industry and the country should rather prefer exports of garments.

India's garments exports maintained were almost flat, withn a growth 0.04 per cent at $902 billion in August on year-on-year basis.

Cotton prices are rising despite projections of a record production in 2010-11 to 335 lakh bales. The domestic demand is estimated at 266 lakh bales.

However, cotton prices in international markets have increased by nearly 100 per cent from 62 cent per lb to $1.20 per lb due to global fibre shortage.