INDIA'S COMMERCE, INDUSTRY MINISTERS TO HOLD COTTON TALKS.

The Indian Union's Commerce and Industries Ministry would hold a meeting next week with Agriculture and Textiles ministries, to assess the domestic production of cotton and its export, a top government official said here on Saturday.

"The meeting will be held next week between the Ministry of Commerce, Ministry of Agriculture and Ministry of Textiles on what total cotton production estimates are and what is the total demand," Union Commerce Secretary Rahul Khullar told reporters.

The agriculture ministry would inform the government about the total cotton production and the Textiles Ministry about how much they need for domestic demand, "which will determine the balance available (for exports)," he said.

He said an initial announcement on cotton exports would be made after the meeting is held.

Khullar clarified that cotton exports would be "unrestricted," meaning it would not be subjected to licensing, not subjected to export taxes..."However, cotton exports have to register with the Textile Commission," he said.

Khullar declined to comment to a query on taxation of Special Economic Zones, stating that the Direct Taxes Code Bill would be tabled in the Parliament on Monday. "I wish I could tell you after it is available in public domain," he said.

He said during a recent visit to Brazil and Mexico, he had noticed that an increasing number of Indian pharmaceutical companies not only establishing bases there, but also doing good businesses. "Last week alone 25 pharmaceutical companies were going to Bogota (Colombia) just to drum up business."

He said the 'Made in India Road Show' will be held in Johannesburgh next week to display Indian products and goods.

To a query on whether the government would lift ban on certain essential commodities in the wake of monsoon season, he said government would take a call by September on making a final assessment of the monsoon season.

"It is premature to say. It is still raining in many parts of the country, where drought was declared earlier... Let more realistic estimates of the kharif crops, pulses, rice come... My guess is wait till the end of September. I think at that point of time the Government will take a call," he said.

By that time we will have clarity on production estimates, he added.

Khullar was here to participate in the Open House Meet with traders and exporters, organised by FIEO and industry body FICCI.

Source : tradingmarkets.com