Chennai: Seeking to allay apprehensions of the textile industry over cotton exports, union textiles minister Dayanidhi Maran today said that the Centre would ensure the domestic requirement was met and export of raw cotton would not exceed 55 lakh bales this year, PTI reports.
“The online registration of cotton export has started and the export of cotton will not exceed 55 lakh bales,” Mr Maran said on the sidelines of a function. Stating that the domestic demand was about 260 lakh bales, Maran said export would begin only after the domestic requirement was met and if there was a surplus.
Referring to the representations that had been received, Mr Maran said Tamil Nadu chief minister M Karunanidhi had written to prime minister Manmohan Singh last month, appealing to him to ensure that the domestic requirement of cotton was fully met before permitting export. Various industry associations, particularly in Tamil Nadu, which is a major textile producer, have opposed the export of cotton, saying it would hurt the requirements of the domestic industry.
Maran said cotton usually arrived in September, but due to heavy rain in certain regions this year the arrival of stocks was delayed. “Now it (cotton) has started arriving,” the minister said.
Asked whether there was a possibility of malpractise in the online registration for cotton exports, Mr Maran said, “It is just online registration. It is not online trading and therefore, there cannot be any malpractises.” He explained that it was mandatory for those who want to export cotton to register online.
On the recent increase in cotton prices, the minister believed that these would stabilise in the coming weeks. Cotton prices in the domestic market are ruling more than 65% higher than that in the corresponding period last year.
Mr Maran explained that in the interest of the weavers, the Centre was keen to generate employment through making cotton clothes for exports. Pointing to the decline in apparel export, he said measures were being taken to correct this trend soon.
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