Govt likely to allow fresh cotton exports on Monday Close.

The government is likely to allow fresh cotton exports on Monday based on revised production and consumption data furnished by the cotton advisory board.

Finance minister Pranab Mukherjee, agriculture minister Sharad Pawar and commerce & textiles minister Anand Sharma will meet on Monday to take a call on the critical issue of whether more cotton exports could be allowed this cotton year.

"The three of us will meet tomorrow to re-assess the situation based on fresh numbers furnished by the Cotton Advisory Board," commerce and industry minister Anand Sharma said at a press conference on Sunday.

Sharma met the finance minister Friday evening to discuss the export ban in the light of the new data, but a final decision on exports could not be taken as agriculture minister Sharad Pawar could not attend the meeting.

Both the agriculture ministry and the CAB have revised upwards the cotton production estimates for cotton year ending September 30 to about 35.2 million bales (170 kg each) and 34.7 million bales respectively, according to an industry official. The CAB had earlier estimated cotton production for the year at 34.million bales.

"The CAB is also said to have revised downwards the domestic consumption data for the year giving more room for allowing exports," a government official told ET.

The commerce ministry had banned cotton exports on March 5, apprehending a shortfall in domestic cotton supplies, but lifted the ban on March 12 allowing exports of pending contracts after strong objection from agriculture minister Sharad Pawar and cotton-growing states of Gujarat and Maharashtra.

India exported 9.4 million bales of cotton in the first five months of the cotton year, bringing down availability for domestic consumption for the entire season to 23.3 million bales against 26.8 million bales consumed last year.

The government subsequently allowed exports of about 2 million bales of cotton that had been registered before the March 5 ban, but had not allowed fresh registration. But the fresh production and consumption estimates could prompt it to allow some more exports.

Source : economictimes.indiatimes.com