Punjab Chief Minister Mr. Parkash Singh Badal today sought the personal intervention of Prime Minister Dr. Manmohan Singh urging him to review the cap on the exports of cotton besides allowing additional exports of about one million bales to ensure remunerative price to the cotton growers for their produce during the ensuing Kharif Marketing Season 2011.
In a letter to the Prime Minister, Mr. Badal apprised him that Punjab is one of the major cotton producing states of the country and it produces about 20 lakh bales of cotton annually. As per estimates of the Cotton Advisory Board of India, the total cotton production in the country during 2010-11 is likely to be 339.3 lakh bales while the domestic consumption of cotton is estimated to be 240 lakh bales. Hence as per current scenario there is surplus of cotton in the country. The union government had imposed a quantitative restriction on cotton exports in October, 2010 when prices of the natural fiber had shot up. The government allowed export of only 6.5 million bales of cotton during 2010-11 seasons to protect domestic textiles industry in the wake of rising prices of the raw material.
The Chief Minister also informed Dr. Manmohan Singh that the restrictions on cotton exports led to softening of cotton prices which have been sharply criticized by farmers' organizations of cotton producing states. During kharif 2010, prices of cotton remained firm and consequently, the area under cotton during current kharif season increased.
Mr. Badal also pointed out that the production of cotton in the country is likely to increase. The International Cotton Advisory Committee has estimated that global cotton production could reach 27.3 million tonnes by 2012 due to improving prices. In light of these facts, he impressed upon the Prime Minister to immediately review the restrictions imposed on the exports of cotton and permitting additional exports of about one million bales to the cotton growers during the current kharif marketing season.
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