India to lift ban on cotton export
Monday, 12 March 2012
Monira Munni
India reversed its ban on cotton exports Sunday in a swift U-turn just after six days of the policy announcement amid protests from farmers.
Prime Minister Manmohan Singh ordered a rapid review of the decision after agitation from farming groups and complaints by the agriculture minister, who said he knew nothing about the ban before it was unveiled
Union Commerce and Industry Minister Anand Sharma said that the government has decided to withdraw the ban on the export of cotton from India "keeping in view" various interests.
Real Time News, India on Sunday disclosed the withdrawal of cotton export ban.
Mr Sharma said the ban, imposed just days ago, has been withdrawn after consultations.
"The matter of cotton exports has been discussed. The group of ministers has also met," he said.
"Keeping in view the facts, the interests of the farmers, interest of the industry, trade, a balance view has been considered by the Group of Ministers to roll back the ban," Sharma said in a statement.
A formal order will be made public today (Monday) by the government, he added.
Government of India, the world's second-largest producer of cotton, unexpectedly banned all exports of the crop on March 05, saying it wanted to protect supplies for domestic mills.
The ban by India had left alarm bells ringing across the world especially in China and Bangladesh. The ban on cotton exports was imposed after more than expected cotton was exported this year.
Bangladesh meets 40-45 per cent of its cotton needs through importing from India.
The export ban, which had taken immediate effect, sent cotton prices soaring on New York's commodity markets and had been expected to send buyers in China flocking to the US market.
The Indian government had fixed a particular quota as surplus cotton that can be exported this year.
Uncontrolled exports are feared to increase domestic cotton prices and make Indian yarn and textile uncompetitive, both within India and outside.
India has already exported 8.5 million bales in the fiscal year ending March 31, more than the government's target of 8.4 million bales.
It had banned cotton exports in April 2010 but lifted the ban the same year.
"Some unscrupulous spinners have already hiked yarn price in the local market and trying to raise it further with the Indian announcement of cotton export ban," President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Selim Osman told the FE.
But now they (spinners) would not raise the yarn price, he added.
"It will definitely have some impact in our local market," Former president of Bangladesh Textile Mills Association (BTMA) Abdul Hai Sarker said welcoming the withdrawal of Indian cotton export ban.
India reversed its ban on cotton exports Sunday in a swift U-turn just after six days of the policy announcement amid protests from farmers.
Prime Minister Manmohan Singh ordered a rapid review of the decision after agitation from farming groups and complaints by the agriculture minister, who said he knew nothing about the ban before it was unveiled
Union Commerce and Industry Minister Anand Sharma said that the government has decided to withdraw the ban on the export of cotton from India "keeping in view" various interests.
Real Time News, India on Sunday disclosed the withdrawal of cotton export ban.
Mr Sharma said the ban, imposed just days ago, has been withdrawn after consultations.
"The matter of cotton exports has been discussed. The group of ministers has also met," he said.
"Keeping in view the facts, the interests of the farmers, interest of the industry, trade, a balance view has been considered by the Group of Ministers to roll back the ban," Sharma said in a statement.
A formal order will be made public today (Monday) by the government, he added.
Government of India, the world's second-largest producer of cotton, unexpectedly banned all exports of the crop on March 05, saying it wanted to protect supplies for domestic mills.
The ban by India had left alarm bells ringing across the world especially in China and Bangladesh. The ban on cotton exports was imposed after more than expected cotton was exported this year.
Bangladesh meets 40-45 per cent of its cotton needs through importing from India.
The export ban, which had taken immediate effect, sent cotton prices soaring on New York's commodity markets and had been expected to send buyers in China flocking to the US market.
The Indian government had fixed a particular quota as surplus cotton that can be exported this year.
Uncontrolled exports are feared to increase domestic cotton prices and make Indian yarn and textile uncompetitive, both within India and outside.
India has already exported 8.5 million bales in the fiscal year ending March 31, more than the government's target of 8.4 million bales.
It had banned cotton exports in April 2010 but lifted the ban the same year.
"Some unscrupulous spinners have already hiked yarn price in the local market and trying to raise it further with the Indian announcement of cotton export ban," President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Selim Osman told the FE.
But now they (spinners) would not raise the yarn price, he added.
"It will definitely have some impact in our local market," Former president of Bangladesh Textile Mills Association (BTMA) Abdul Hai Sarker said welcoming the withdrawal of Indian cotton export ban.