Commerce min to discuss cotton exports with agri, textile ministries.

The commerce ministry would hold a meeting with agriculture and textile ministries on September 1 to discuss cotton exports.

Speaking to reporters here, commerce secretary Rahul Khullar said the meeting was being called to fix export quota.

Cotton export restrictions is to be lifted from October 1. "However preference will be given to the domestic market and interest of farmers would be kept in mind," he said.

The commerce ministry will ask the two ministries to submit their requirements and production capacities respectively. "Whatever the excess amount, it will be allowed to export without any customs duty, tax and licence. However they have to do prior registration," he said.

Earlier, the government had announced that the Rs 2,500 per tonne export duty on cotton would go from October 1 and the textiles commissioner would start registration of mandatory cotton contracts.

Following this, cotton export would be put under Open General Licence, which means unrestricted and free export of cotton.

India’s cotton production is expected to rise marginally at 5.1million tonnes during the 2010-11 crop year (July-June) as against 5.01 million tonnes last year, while domestic demand is estimated to rise at 4.59 million tonnes from 4.25 million tonnes, according to the Confederation of India Textiles Industry.

Khullar said there would be a slowdown in the overall export growth. "The 25-30 per cent export target will not happen and we should not be disappointed," he said adding the growth would be moderate.

Source : sify.com