Cotton exports rise as ban lifted

GUNTUR, May 23: Lifting of ban on cotton exports by the Centre led to increase in the exports. Cotton exports are expected to touch 90 lakh bales this year because demand for cotton is increasing in international market.The traders, who till now exported 74 lakh bales, are still getting orders from countries like Indonesia, Mexico, China and Bangladesh.

     The Central government has lifted the ban on cotton exports in response to representation made by the Andhra Pradesh Cotton Association leaders led by its president G. Punniah Chowdary, who met Union minister of state for textiles Panabaka Lakshmi, union minister for textiles Dayanidhi Maran, union minister minister for commerce Anand Sarma in Delhi.

     To mount pressure on the Central government, 1,200 ginning mills in the state were closed for two days as a protest against the ban on cotton exports.After lifting of the ban on May 21 by the Centre, the demand for cotton is increasing in domestic market which led to hike in price to Rs 3,100 per quintal from Rs 2,800. If the same situation continues, traders expect the price to reach Rs 3,400 per quintal very soon.Last year, the traders exported 35 lakh bales, less than half of produce exported till now this year.

     As the farmers are getting a remunerative price, sowing area of cotton is expected to increase during this year.Andhra Pradesh Cotton Association president G. Punniah Chowdary said, “Lifting of ban on cotton exports led to increase in price of cotton in domestic market. As a result, the sowing area of cotton will increase. The Centre is also considering the revival of incentives to cotton exporters.”