Govt's Cotton Policy to Look at Stabilising Prices.

In view of increasing prices of cotton, the government will soon announce the Cotton Security Policy next week, in time for the beginning of the cotton season. While the government readies to announce the policy, weavers and powerloom owners have gone on a strike against the proposal to permit exports of cotton, reports CNBC-TV18’s Malavika Jain.

Below is a verbatim transcript of her comments on CNBC-TV18. Also watch the accompanying video.

The government is planning to announce a cotton security policy next week. This policy aims at stabilizing the prices of cotton which has been rampantly been increasing. So what the government proposed to do is to keep 265-275 lakh cotton bales for domestic consumption but at the same time continue to provide for exports. For export purposed they are going to be keep about 55 lakh cotton bales separately.

The government feels this is going to address the concerns of all the stakeholders but what is interesting to note is while the government is planning to bring in this policy next week, the weavers and the power loom owners in the South of India have gone on a strike and they are demanding that there should be ban on exports of cotton. This strike is being supported by Powerloom Development and Export Promotion Council. Earlier during the day we spoke to the textile Secretary -

Rita Menon, Textile Secretary said, “We would wish to announce the cotton security policy well in advance of October 1. We are very clear that our domestic requirement is 265-270 lakh bales. We then have only 55 lakh bales that can be considered for export and very handsomely the ministry has announced that we are happy with an export of 55 lakh bales but definitely not a bale more.”

It is hoped that the Cotton Security Policy announcement of the government next week is going to bring in long-term stability in the prices of cotton and at the same time it will also address the concerns of all the stakeholders.

Source : moneycontrol.com