Govt Closely Monitoring Cotton Prices: Sharma.

New Delhi: The government is closely monitoring prices of cotton in view of problems faced by the domestic industry, Commerce, Industry and Textiles Minister Anand Sharma said on Wednesday.
     
"The cotton textile industry has been facing a critical situation in recent times. We are maintaining a close watch on the price situation both domestically and internationally," Sharma informed the members of Consultative Committee of Textiles.
     
The government had capped cotton exports at 55 lakh bales (170 kg each) to protect the domestic textile industry in the face of rising cotton prices.
     
For the last two days, cotton prices have been inching up in the domestic market. Today, cotton prices rose by Rs 1,000 to Rs 41,000 per candy (356 kg each) on market rumours that government may announce sops for exporters tomorrow, traders said.
     
He also said that the ministry has initiated a policy dialogue with cotton producing states.
     
The Committee discussed issues like measures to boost exports, amid the global slowdown, raw material availability for the industry among other issues.
 
The textile industry contributes 14 percent to the industrial production and over 10 percent to exports.
     
The sector is the second largest employment generator after the agriculture sector, engaging 35 million people across various segments in the entire value chain.
     
Expressing concern over the precarious situation of the dyeing industry in Tirupur, Sharma said a suitable solution would be in place soon.

Source : zeenews.india.com