Government May Not Allow More Cotton Exports
The government may not allow more exports of cotton in the current season as stocks are reported to be much lower than earlier reported.
"We need to look into what is the exportable surplus. We are regularly monitoring the situation and a considered view will be taken," said the newly appointed minister of textiles, Anand Sharma . He already holds charge of the commerce and industry ministry.
Ministry officials say cotton stocks were only 1.7 million bales against earlier reported 5.5 million bales. A textile ministry official said that at 1.7 million bales the 'barrel has run dry'and there was no question of allowing exports.
The government had decided to permit exports of an extra 10 lakh bales of cotton during the current season ending September 2011. The country had already exported 52.5 lakh bales since September last year.
"With low domestic demand and huge pile ups of inventory with the mills, the situation is very gloomy and a lot needs to be done" Sharma added.
"Textiles sector is a major employment provider therefore; we will see that the functions of the institutions should be made more robust, particularly the revival of Tirupur" Sharma said.
Source: economictimes.indiatimes.com
