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LATEST NEWS UPDATES | Cotton export relaxation comes a little late-S Harpal Singh

Cotton export relaxation comes a little late-S Harpal Singh

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published Published on May 3, 2012   modified Modified on May 3, 2012

The permission given by the Centre for new registrations for export of cotton has brought little cheer either to cotton farmers or to the huge cotton processing industry in Adilabad district. Both the segments feel the move is too little and too late.

Almost all the cotton produced in this district has arrived in the markets and no trader has dared stocking cotton bales this season owing to its low price. The drought resulted in a 40 per cent decline in the normal yield of 65 lakh quintals causing a negative impact on the processing industry.

Over 70 per cent of the 122 cotton ginning and pressing mills across the district have already closed shop as operations turned economically unviable. Inferior quality of cotton has kept the Cotton Corporation of India (CCI) away from local markets though it has taken up commercial operations during the season.

“There is no use of the fresh relaxation. In fact it will only harm our interests,” says Gade Vinod, of the G.M.R. Spintex Pvt. Ltd spinning mill and the president of Adilabad Agro Industries Association (AAIA), as he contemplates the impact of the latest development.

“There is a likelihood of cotton bales disappearing from the market consequent upon fresh registrations for export. This certainly will harm the spinning industry,” he explains.

“The promise of a review of the decision to allow fresh registrations after two weeks has come as a deterrent to traders and businessmen in the field. What if the decision is suspended once again after the review,” questions a circumspect Bajrang Lal Agrawal, a major cotton processor in the district and advisor of the AAIA.

There is in fact, resentment among industrialists over the way in which the issue of cotton export was handled by the government this year. “The Government bungled by imposing a ban on export of cotton early in March,” accuses, a trader wanting to remain anonymous. “Had it continued with the exports, the price of cotton would have been higher benefiting the farmers. The current step will benefit only a few farmers in Gujarat,” he adds.

The Hindu, 3 May, 2012, http://www.thehindu.com/todays-paper/tp-national/article3378612.ece


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