Raw cotton export ban cost Gurjarat farmers Rs4,000 crore
17 Nov 2010
According to the Gujarat government's calculations the state's farmers suffered losses to the tune of Rs4,000 crore last year due to export restrictions imposed by the central government on raw cotton.
According to a senior official, Gujarat's farmers, who exported most of the raw cotton being produced in the state were forced to sell the commodity to yarn mills of south India at a 40 per cent lower price than what is commanded in international markets.
Officials say, with a bumper crop expected this year, farmers would suffer more. According to officials despite the unexpected November rains that would likely affect the quality of cotton, the expectation is that production would rise by 28 per cent over the last year figure of 78 lakh bales.
They add that the farmers would be left with no other option but to sell the huge cotton output - which would be about a third of the country's production, at a much cheaper rate because of the export restrictions.
The international price of cotton has, in the meantime, risen up by anywhere between $170 and $180 per candy (356 kg). This is because cotton production in China and Pakistan has suffered serious losses due to unexpected heavy rains.
The Gujarat Powerloom Association (GPA) has meanwhile, demanded an immediate ban on the export of cotton yarn. Additionally, it has called for bringing cotton yarn under the Essential Cotton Export Act.
