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Cotton export ban to help domestic market
Binny Sharma
New Delhi
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Photo: Tarun Sehrawat |
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EVEN AS cotton traders rue the continuation of a ban on cotton exports, a majority of industry experts said on Tuesday that this decision would protect the domestic industry.
The textile ministry, anticipating a shortfall in the domestic market stopped cotton exports earlier in March and formally after a meeting on Monday announced that ‘until further orders, there will be no new registration for cotton exports’.
“Cotton price is not expected to come down as 20 lakh bales for export purpose is yet to be procured from the market in addition to around 25 lakh bales expected to be commercially purchased by the Cotton Corporation of India at market prices,” informed DK Nair, secretary general, Confederation of Indian Textile Industry.
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Cotton prices won’t drop. So traders need not worry, say industry experts |
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“There is no question of cotton price depreciation as highlighted by cotton traders as a lot of buying of raw cotton is expected to take place for domestic consumption in the country. This move will protect the domestic industry ,” he said.
It is estimated that domestic consumption of raw cotton stands at 233 lakh bales against 268 lakh bales consumed last year.
So far India has exported 94 lakh bales in the first month of cotton year.
“The world cotton industry has sufficient supplies to meet current demand, and world stocks of cotton are rising.
“Furthermore, the continuation of the ban on exports was fully anticipated by market participants,” said a statement by International Cotton Advisory Committee.
But, Dhiren Seth, president, Cotton Association of India said, “We anticipate raw cotton price to depreciate by almost 8-10 per cent.”
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