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‘Temporary ban on cotton exports likely’ -Ravi Dutta Mishra

-Livemint.com

Cotton prices have touched 90,000 per candy. Prices of some  varieties of have  touched 100,000 per candy

The Union government may impose a temporary ban on cotton exports if cotton prices continue to surge, textiles secretary Upendra Prasad Singh told Mint. The statement comes at a time when the Indian textile Industry is reeling under a spike in cotton and yarn prices, impacting production and exports.

Cotton prices have doubled in barely a year to over 90,000 per candy. Prices of some varieties of cotton have even touched 100,000 per candy. A ban could free up cotton for the domestic market and thus help soften prices.

High cotton prices affect the Indian textile industry disproportionately, as it is heavily dependent on cotton, unlike other markets where man-made fibre occupies a larger share.

Singh said cotton prices are unlikely to decline before October when the new cotton crops arrive. Cotton prices have been a “dampener" and the problem could persist for some time as there is a global shortage of cotton, Singh said.

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