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The Group of Ministers (GoM) on Wednesday decided to permit exports of an extra 10 lakh bales of cotton during the current season ending September.
Out of the 55 lakh bales (170 kg each) approved export quota for 2010-11 season (October-September), around 52.5 lakh bales have already been shipped out since October.
After the GoM chaired by the Finance Minister Mr Pranab Mukherjee, the Commerce and Industry Minister Mr Anand Sharma told reporters that the Government has decided to allow an additional extra 10 lakh bales. With the additional 10 lakh bales, the total exports will be 65 lakh bales by September-end, he said.
Earlier, the Agriculture Minister Mr Sharad Pawar had pitched for an extra 15 lakh tonnes of cotton during the current season in a bid to secure better earnings for farmers.
Though supplies of cotton were reportedly more than the domestic demand, Mr Sharma, however, said the GoM took into account the commodity’s domestic consumption, including by textile mills, till fresh stock arrives in the market in October. The Textile Ministry was against relaxing the cotton export cap due to apprehensions of an increase in domestic prices of the item.
The cotton production in India - which is the second biggest cotton producer in the world - in 2010-11 crop year is estimated at 33.9 million bales against 24.2 million bales in the previous year.
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