The Centre is planning to create a price stabilisation fund generated by imposing cess on cotton exporters so that prices do not fluctuate in times of fall in production.
"Whenever we have to import, due to a fall in production, the price stabilisation fund would ensure stability in prices and fluctuation in prices would not affect the farmers or millers. We would like to speak to farmers and the industry in this regard," Union Textiles Minister K S Rao told reporters here today.
Replying to a query, he said the fund can be managed by Cotton Corporation of India.
Rao held a meeting with weavers and various stakeholders of textiles sector here today on his first visit to Hyderabad after assuming charge as Union Textiles Minister recently.
Stressing that efforts needed to be made for the welfare of cotton farmers and weavers, he said about Rs 3,000 crore would be spent for the benefit of weavers in the form of writing off loans, provision of loans at low interest among others.
The amount of Rs 3,400 crore was earmarked for welfare of weavers in the Budget earlier, but about Rs 3,000 crore had gone back to the Centre due to the delay in enumeration process.
The minister said he would pursue the matter with the Finance Ministry and the Cabinet Committee on Economic Affairs (CCEA) to get the fund back.
