India will be a major beneficiary due to the rise in global prices of sugar and cotton, said Union agriculture minister Sharad Pawar.
He told Business Standard: “India will benefit a lot, as there are ample opportunities for exports. The Government of India will have to take a decision on exports of sugar after Diwali. Similarly, the government will soon have to take a call on cotton exports.”
Pawar said sugar production was expected to be 25 million tonnes at the end of the current crushing season (2010-11). Similarly, India would have increased cotton production. According to the Maharashtra State Cooperative Cotton Growers Marketing Federation, India is expected to have 32.5 million bales (a bale is 170 kg) of cotton production in 2010-11, against 29.2 mb in 2009-10. Besides, there is a carry forward stock of four mb.
Pawar said the sugar industry has repeatedly made a demand for allowing exports under the open general licence. “Currently, sugar prices in India are the lowest, compared to global prices. India and particularly growers will benefit when sugar prices are high in the international markets.”
Natural calamities, he said, had hit sugar production in China, Pakistan, Russia, Indonesia and Mexico. Similarly, the cotton crop has been severely affected in Pakistan and China. “This is a good opportunity for sugar and cotton growers in India, to meet the increased demand from these countries and thereby benefit due to soaring prices,” he reiterated.
Cotton growers have made a fresh appeal to the Centre to allow cotton export under the open general licence. Said N P Hirani, chairman of the Maharashtra State Cooperative Cotton Growers Marketing Federation: “It is high time the Centre removes the 5.5 million bales cap on cotton exports, especially when prices are showing an upward trend.”