Gujarat chief minister, Narendra Modi strongly criticised the central government's decision of banning cotton exports and demanded an immediate repeal of the order issued by the director general of foreign trade (DGFT).
Terming the step as anti-farmer, Modi alleged central government for colluding with private textile millers and and yarn makers.
In his letter written to the Prime Minister on Monday, Modi alleged that it was a deliberate attempt by central ministries and millers to portray an artificial shortage of cotton in the domestic market thereby prompting a ban and procure cotton at lower rates from farmers.
"Last year cotton farmers had to face similar situation due to sudden ban on cotton exports, which caused a loss of Rs 14,000 crore to Gujarat's farmers. This year, Gujarat is expected to produce 11.6 million bales (each of 170 kg) against 9.8 million last year," Modi claimed in the letter.
"The central government's harsh step has come at a time, when international prices of shankar - 6 variety have increased. This is a step to push Gujarat farmers towards bankruptcy," Modi wrote.
While demanding a permanent exemption for Shankar-6 variety of cotton from export prohibitions, Modi cautioned the Central government for not tampering with the farmers' interest.
It may be noted here that soon after the ban announced by DGFT, price of Shankar-6 variety has dropped by Rs 2000 per candy (each of 356 kg) from Rs 35,000 per candy to Rs 33,000 per candy on Monday.
As per the industry estimate, of the total estimated cotton output of 11.5 million bales (most of which is Shankar-6 variety) in Gujarat, around 7.5 million bales has already arrived in market. Nationally, total cotton output is estimated to be around 34 million bales, of which about 24 million has arrived in market.
