4K cr Loss to Guj Farmers Due to Raw Cotton Export Ban: Govt.

GANDHINAGAR: Gujarat government has calculated that the state's farmers suffered losses to the tune of Rs 4,000 crore last year as a result of export restrictions imposed by the Government of India on raw cotton. "Thanks to the restrictions, Gujarat's farmers, who exported most of the raw cotton  being produced in the state, were forced to sell the commodity to the yarn mills of south India at a price which is 40 per cent lower than that in international market," a senior official said.

With a bumper crop expected this year, officials believe the state's farmers will suffer more. "Despite unexpected rains in November, which are likely to affect the quality of cotton, we expect the production to rise by 28 per cent over last year's 78 lakh bales," the official said, adding, "Yet, the farmers are left with no other option but to sell the huge cotton output  which will be about one-third of the country's production  at a much cheaper rate because of the export restrictions."

Significantly, the international price of cotton has shot up to anywhere between $170 and $180 per candy (356 kg). It has gone up because cotton production in China and Pakistan has suffered serious losses on account of unexpected heavy rains.

"Gujarat's farmers, who accounted for 48 per cent of cotton exports from India, are now being forced to sell the bumper crop to the cotton yarn mills in Tamil Nadu and Andhra Pradesh at a low $129 per candy," the official said, adding, "US farmers are having a field day. They have captured the entire international cotton textile market."

When contacted, state agriculture minister Dilip Sanghani said, "By imposing restrictions on cotton exports, the Government of India has failed to take advantage of the free trade regime in cotton textile sector of the World Trade Organization (WTO). It betrays anti-Gujarat policy of Government of India, which won't let state's farmers gain. Not only this, we are losing precious foreign exchange."

Officials admit that Gujarat's farmers are forced to sell about 90 per cent raw cotton to the cotton yarn units of Tamil Nadu and Andhra Pradesh as after the collapse of composite textile mills, the state government failed to promote the cotton textile sector. "Despite the state government incentive of Rs 2 crore interest subsidy, the sector developed in south India, but Gujarat lagged behind," an official said.

Meanwhile, sources in CM office said, chief minister Narendra Modi is in the process of preparing a strong representation to Government of India over export restrictions affecting state farmers. "Modi is likely to take up the issue with Union textile minister Sharad Pawar and Union textile minister Dayanidhi Maran," a CMO source said.

Source : timesofindia.indiatimes.com